Question

Mortgage interest rates hit a high of 21% in 1981. Over the next 32 years, interest rates decreased by 69%. What was the interest rate in 2013? Round your answer to the nearest hundredth of a percent.

A. 6.51%
B. 6.72%
C. 6.57%
D. 6.81%

Answer 1

To calculate the decrease in interest rates over the next 32 years, we multiply the highest rate by 69% (0.69), which gives us 14.49%. The interest rate in 2013 was 6.51%.

Step-by-step explanation:

To find the interest rate in 2013, we start with the highest interest rate in 1981, which was 21%.

To calculate the decrease in interest rates over the next 32 years, we multiply the highest rate by 69% (0.69), which gives us 14.49%.

We then subtract this amount from the highest rate to find the rate in 2013.

21% - 14.49% = 6.51%

Therefore, the interest rate in 2013 was 6.51%.