(Calculating the rate of return) A friend promises to pay you $600 two years from now if you loan him $500 today. What interest rate is your friend

(Calculating the rate of return) A friend promises to pay you $600 two years from now if you loan him $500 today. What interest rate is your friend offering you?

As the method of interest (rate of return) computation is not mentioned in the problem,we shall calculate interest by both:•• Simple Interest method, and;Compound Interest method....