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    What is the interest rate for a simple loan?

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    Suppose that a relative agrees to loan you $1,000 today, with the promise that you will repay the loan with interest after one year. If you pay $1,120 at the end of the year, what is the interest rate for this simple loan?

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    https://brainmass.com/economics/microeconomics/interest-rate-simple-loan-475861

    Solution Summary

    This solution shows how to calculate the interest rate for a one-year loan.

    $2.19