Answer: 3.8%
Step-by-step explanation:
First find the interest cost:
= Amount repaid - Amount borrowed
= 11,052 - 9,000
= $2,052
This cost is the simple interest and because it is the same figure per year, the annual simple interest can be determined by dividing the above by the number of years:
= 2,052 / 6
= $342
Now that we have the simple interest amount, divide it by the amount borrowed to find the rate:
= 342 / 9,000
= 3.8%
