Question

Hannah borrowed $2,000 from a bank. She agreed to pay back the bank $2,180 after 2 years. What was the simple interest rate of the loan?

Hannah borrowed $2,000 from a bank. She agreed to pay back the bank $2,180 after 2 years. What was the simple interest rate of the loan?

Answer 1

that would be $90 dollars a year or an interest of 4%. first you are going to subtract the beginning number from the end sum. (2,000-2,180=180) then you divide that number by the number of years she had this loan. (180÷2=90) then to get the percentage you divide that number by your beginning sum. (90÷2,000=0.04) this gets you 4%