Suppose that you borrow $$ \$ 1000.00 $$ from a friend and promise to pay back $$ \$ 1975.00 $$ in 5 years. What simple interest rate will you pay? The simple interest rate is $$ \square \% $$ (Round to the nearest tenth as needed.)

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To find the simple interest rate, we can use the formula for simple interest:

$$
A = P(1 + rt)
$$

Where:
- $$ A $$ is the total amount to be paid back (\$1975.00)
- $$ P $$ is the principal amount borrowed (\$1000.00)
- $$ r $$ is the annual interest rate (in decimal)
- $$ t $$ is the time in years (5 years)

Plugging in the known values:

$$
1975 = 1000(1 + r \times 5)
$$

Divide both sides by 1000:

$$
1.975 = 1 + 5r
$$

Subtract 1 from both sides:

$$
0.975 = 5r
$$

Divide both sides by 5:

$$
r = \frac{0.975}{5} = 0.195
$$

Convert the decimal to a percentage:

$$
r = 19.5\%
$$

**The simple interest rate is 19.5 %.**
The simple interest rate is 19.5%.

Suppose that you borrow from a friend and promise to pay back in 5 years. What simple interest
rate will you pay?
The simple interest rate is (Round to the nearest tenth as needed.)

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Suppose that you borrow from a friend and promise to pay back in 5 years. What simple interest rate will you pay? The simple interest rate is (Round to the nearest tenth as needed.)