Question

Ashley borrowed $4000 from a bank for 2 years and was charged simple interest. The total interest that she paid on the loan was $320. As a percentage, what was the annual interest rate of her loan?

Answer 1

It is 4% hope this helps you on your journey through school

Answer 2

I= PRT

Interest = (Principal)(Rate)(Time in years)

320 = (4,000)(rate)(2)

320 = 8,000r

0.04 = r
Then convert to a percentage, and get 4%