Question

Zach borrowed four thousand dollars from his grandfather to buy a used car so he could travel to and from work. After working for 3 years, he has saved five thousand four hundred forty dollars to pay back to his grandfather. At what interest rate did Zach borrow the money?

Answer 1

@greenlegodude57

Answer 2

@ganeshie8

Answer 3

@greenlegodude57

Answer 4

Do you know how to set up the problem?

Answer 5

Borrowed 4000
Worked 3 years
Payed back 5440

Answer 6

You have to find the interest rate in 3 years from 4000 to 5440.

Answer 7

5440 / 4000 is approximately 1.36
1.36 / 3 is approximately 0.45

So the interest rate is 0.45%.

Check:

.45 x 3 = 1.35
1.36 * 4000 = 5400.
That's close enough.

Answer 8

Thats it

Answer 9

There isn't a choice 0.45. :/

Answer 10

I think it's .25, because .25 * 5440 = 1360 and 5440 - 1360 = 4080.

Answer 11

Thanks.