Question

Gil borrows $8,000 for college expenses. He will pay a total of 10,280 after 6 years. Gil says the interest rate is at least 5%. Is he correct? Explain

Answer 1

4.75 duh

Explanation:

Answer 2

Answer:

Wrong, Answer is 4.75%

Explanation:

First we get the interest value by;

I = 10,280 - 8,000 = 2,280

I = 10,280 - 8,000 = 2,280

Recall that,

I = PRT/100

R = 100I/PT

R = 100 X 2,280 ÷ 8,000 X 6

R = 228,000 ÷ 48,000

R = 4.75%