Question

The interest rate on a car loan has decreased 29.3% over the last 10 years and is now 7.7%. What was the rate 10 years ago?

(Express your answer rounded correctly to the nearest tenth of a percent!)

Answer 1

A decrease of 29.3% means 100-29.3=70.7% reduction factor. Therefore we need 0.707 of 7.7%=5.4% approx.