Question

Joannie lent $200 to her sister 4 years later her sister repaid her in full with $228 what simple interest rate did joannies sister pay

Answer 1

3.5%

Explanation:

Joannie got $228-$200 = $28 extra profit.

So, every year she got $28 : 4 = $7

7 : 200 = 0.035, so she got a 3.5% interest rate annually.