What are the steps to solving the below question?

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student loan is 28700. It has become a $330 monthly payment for 10 years. what monthly interest rate is being charged on this loan?

Jun 26th, 2015

Thank you for the opportunity to help you with your question!

assume the monthly interest rate is a

330*(1+a)^10=28700

(1+a)^10=86.97

a=1.56-1=0.56

thus the interest rate is 56%. 

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jun 26th, 2015

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