Question

Gabby used a 2 year loan to purchase a $1650 television. If she ended up paying $1914 in total, find the interest rate.

Answer 1

the interest rate was 8% per year.

Explanation:

To begin with, we will find the total amount of interest paid:

$1914-$1650=$264.

Divide by 2 years:

$264/2=$132.

Hence now, we can find the interest rate:

$1650/100%=$16.5;

$132/$16.5=8%.