Question

Hannah took out a $600 loan from the bank. At the end of 5 years, she pays back the

principal, plus $60 simple interest. What was the annual interest rate?

Answer 1

Answer: 2%

Explanation:

First, take $60 divided by $600, then times 100% = 10% rate for five years

Then take 10 divided by 5 = 2% per year