Alan loans $3750 to Betty at a 6.2% simple interest rate. Betty agrees to repay the loan after 13 months. After 3 months, Alan needs money unexpectedly, so he sells the loan to Chris for $3800. What annual rate of simple interest does Chris earn on this investment? Give your answer as a percentage, rounded to 2 decimal places

Alan loans $3750 to Betty at a 6.2% simple interest rate. Betty agrees to repay the loan after 13 months. After 3 months, Alan needs money unexpectedly, so he sells the loan to Chris for $3800. What annual rate of simple interest does Chris earn on this investment? Give your answer as a percentage, rounded to 2 decimal places

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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