Question

The interest rate on a car loan has decreased 40% over the last 10 years and is now 8.3%. What was the rate 10 years ago?

Answer 1

The interest rate on the car loan 10 years ago was 13.83%

Explanation:

Let's assume that the interest rate on the car loan 10 years ago was "x" percent.

According to the problem, the interest rate has decreased by 40% over the last 10 years. We can express this mathematically as:

x - 0.4x = 0.6x

This means that the current interest rate (8.3%) is equal to 60% of the interest rate from 10 years ago (0.6x).

So we can write:

0.6x = 8.3%

To solve for x, we can divide both sides by 0.6:

x = 8.3% / 0.6

x = 13.83%

Therefore, the interest rate on the car loan 10 years ago was 13.83%.

Hope this helps, I'm sorry if it doesn't. If you need more help, ask me! :]