Question

Agatha borrowed $4,500 from the bank. 4 years later, Agatha owes the bank $5,040. What was the percentage rate of simple interest in the loan?

Answer 1

12%

Explanation:

If we subtract both numbers we get 540.

`(540)/(4500) = (x)/(100) \\`

540 x 100 = 54,000

54,000 / 4,500 = 12%