Question

Mariah borrowed $1200 to buy a new computer system. She paid the simple interest loan off in 24 monthly payments of $56 each. What was the interest rate of this loan? a.2%

b.6%
c.4.4%
d.7%

Answer 1

B. 6%

Explanation:

Answer 2

6%

Explanation:

Her 24 monthly payments total 24 x $56 = $1344

That means that $1344 - $1200 = $144 is just interest. What percent is this of her loan amount? Divide to find out:

144 / 2400 = 0.06 = 6%