EFFECTIVE RATE OF INTEREST

Find the interest rates earned on each of the following. Round each answer to two decimal places.

1. You borrow $710 and promise to pay back $781 at the end of 1 year.

   %

2. You lend $710 and the borrower promises to pay you $781 at the end of 1 year.

   %

3. You borrow $61,000 and promise to pay back $206,139 at the end of 7 years.

   %

4. You borrow $16,000 and promise to make payments of $5,001.00 at the end of each year for 5 years.

   %