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?

Question

anonymous · Answer

a. 9%
b. 12%
c. 25%
d. 26%

anonymous · Answer

i am assuming simple interest as you havent mentioned anything

now principal amount=P=4000
rate of interest per annum=R=?
t=no. of years borrowed for=3

now he is paying an interest of "I'=total final amount-borrowed principal= 1900

now I=(P x R x t)/100

1900=(4000x R x 3)/100
solve, you should get the rate of interest per annum. multiply by 100 to get interest %age.

anonymous · Answer

I am nit sure what you mean? is it a. b. c. or d.??

anonymous · Answer

c