[EsselMcGee]

How do I find the interest rate if I borrow $700 and repay $749 at the end of 1 year?

[viron guiling]

in determining the interest rate the formula must be used
r=rate
I=interset
P=principal
t=time
hence; r=I/PT
in the situation the interest =$49
principal=$700
time= 1
Solutions: r=$49/$700*1*1OO=49%

[Fidget1]

The interest rate is 7%

1. Divide total payback by amount borrowed ($749/700) = 1.07
2. Raise the result (1.07) to the power of 1/t = where t is number of periods interest will be paid. In this case 1/t = 1/1, which = 1, therefore the result is still 1.07
3. Subtract 1. This equals 0.07
4. Multiply by 100 to get 7%.

To confirm answer is correct, do a cross-check of amount borrowed x interest rate. The result should be the difference between the amount borrowed and the amount paid back. In this case $700x7% = $49