Please choose the correct ending to complete the given sentence: Finance and Business: [header] How to calculate implicit interest rate [title] Define implicit interest. [step] If you borrow money from someone and agree to pay it back with an additional amount, you are not specifying any interest or interest rate. Let's use the example that you borrow $100 , 000 from your brother and promise to pay him back in 5 years plus an extra $25 , 000.

Ending1: [substeps] Let's say you borrowed a $100 , 000 car from your brother and you personally sent it back to him. And, you owe him $250 , 000 in repair and maintenance fees. Ending2: The first time you borrow money from your brother, you borrow $100 , 000 from him. Now instead of allowing him to make more money, he will need to find out how much he owes you in months or years. Ending3: In order to find the interest rate that is " implicit " or " implied " in this agreement, you need to do a mathematical calculation. [substeps] The formula you will use is total amount paid/amount borrowed raised to 1/number of periods = x. Ending4: For this example, assume you borrow $100 , 000 for the same reason you took out the next amount or two hundred dollars for the five years. Some investors can loan money to someone with an account that did not balance out.

Answer format: ending1/ending2/ending3/ending4