27.7k views
5 votes
Rita borrowed $4000 from a bank for 3 years and was charged simple interest. The total interest that she paid on the loan was $840. As a percentage, what was the annual interest rate of her loan?

User KeitelDOG
by
5.8k points

1 Answer

0 votes

Answer:

7%

Explanation:

Interest = Principle × Rate as a decimal × Time in years

840 = 4000 × r × 3

840 = 12,000r

r = 840/1200 = 0.07

User LazerBanana
by
6.3k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.