Question

A loan of$8000 was repaid in 24 equal monthly installments of $400 . The rate of interest on the loan was​

Answer 1

1%

Explanation:

24(400) = 9600 = total amt paid

9600 - 8000 = 1600 = amt of interest paid

I = PRT T = 2 yr

1600 = 8000(2)R

1600 = 16000R

1600/16000 = 1/10 = .01 = 1%