Question

Joannie lent $200 to her sister. 4 years later, her sister repaid her in full with $228. What simple annual interest rate did joannies sister pay?

Answer 1

Joanne’s sister paid 3.5% annual interest rate.

Answer 2

$7/year

Explanation:

228-200 = 28

divide by the 4 years : 28/4= 7