Question

My cousin borrowed $15,000 for a new car loan for 5 years. He told me that at the end of the loan, he had paid $21,000 for the interest and principal. What was the rate of the loan?

Answer 1

It's 8% I think the person above didn't quite understand

Explanation:

Have a nice day!!

Answer 2

The rate of the loan was 1.4%

Explanation:

Set up Equation:

$15,000n = $20,000

Substitute Variable

n = 1.4

Check Answer:

1.4% x $15,000 = $20,000