Question

Joannie lent $200 to her sister. Four years later, her sister repaid her in full with $228. What simple annual interest rate did Joannie's sister pay? A. 3.0% B. 3.5% C. 4.0% D. 4.5%

Answer 1

The answer is 3.5% because 3.5% of 200 is 7 so after four years you have collected 28 dollars from the past four years.

Answer 2

The correct answer is B 3.5%