In 2007, Rachel borrowed $800 from a bank; she has repaid $2,700 after three years. At what rate of compound interest did the bank lend money to Rachel? (Interest is compounded annually).
Hint: A = P (1 + r)n
A – amount of money paid after n years
P – principal amount
r – interest rate
n – number of years

A.

0.1%

B.
3%

C.
50%

D.
5.5%

E.
8%

Question

In 2007, Rachel borrowed $800 from a bank; she has repaid $2,700 after three years. At what rate of compound interest did the bank lend money to Rachel? (Interest is compounded annually).
Hint: A = P (1 + r)n
A – amount of money paid after n years
P – principal amount
r – interest rate
n – number of years

A. 

0.1%




B. 
3%




C. 
50%




D. 
5.5%




E. 
8%

tkhunny · Answer

There is insufficient information.  What is the condition of the loan after 3 years?  Is it paid off?