Question

A friend of mine borrowed $800 for 3 years. He claims he paid $968 for the interest and principal. What was the rate on the loan?

Answer 1

7%

Explanation:

So basically

I=$800 times 9% times 3 = 216$

$216 + 800 =/ $968

try: $968 - $800=168 (interest paid)

$168 = $800 times r times 3

$ 168 divided by $800 times 3 +r

hope this helps :-)

Answer 2

56$ per year

Explanation: