Question

A loan of $8 000 was repaid in 2 years in

monthly payments of $400.00. The interest
on the loan, as e percentage, was?
​

Answer 1

P = 8000

t = 2

I = p × r × t

400 = 8000 × r/100 × 2

r = 400/160 per year

r = 40/16 = 2.5 %