Question

The interest rate on a car loan has decreased 22.3% over the last 10 years and is now 8.1%. What was the rate 10 years ago?

Answer 1

For this case we can set a proportion rule like this:

`(8.1)/(100-22.3) = (x)/(100)`

where x is the interest rate 10 years ago and if we solve for x we got:

`x = 100 *(8.1)/(77.7)= 10.42%`

So then the interest rate 10 years ago is about 10.42 %

Explanation:

For this case we can set a proportion rule like this:

`(8.1)/(100-22.3) = (x)/(100)`

where x is the interest rate 10 years ago and if we solve for x we got:

`x = 100 *(8.1)/(77.7)= 10.42%`

So then the interest rate 10 years ago is about 10.42 %