Question

To purchase new furniture, the owner of a restaurant borrowed $5,000 for 2 years and paid $350,000 simple interest on the loan. what rate of interest did she pay?

2.0 percent

10.0 percent

5.0 percent

3.5 percent​

Answer 1

None of the above. If she paid $350,000 in interest on a simple $5,000 loan the interest rate would be much much higher.

Are you sure you have all the numbers correct?

Answer 2

Answer: The question is supposed to say she paid 350.00 simple interest. The answer is somehow 3.5 percent