Question

Cora got a $1200 loan for 2 years. She paid $90 in interest. What was her interest rate? (*hint: you will get a decimal as an answer that needs to be turned to a %). SOS I NEED THIS VERY QUICK

Answer 1

4%

Explanation:

Formula - l/Pt=r

l=intrest amount paid in a specific time period, 90

P = Principle amount(before intrest), 1,200

t = Time period involved, 2 years

r = Interest rate in decimal,

90/1,200*2 , 90/2,400 = 0.0375 = 0.04 = 4%