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23 September, 07:01

Jamerra received a $3,000 car loan. She plans on paying off the loan in 2 years. At the end of 2 years, Jamerra will have paid $450 in interest. What is the simple interest rate on the car loan?

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  1. 23 September, 10:48
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    If Jamerra pays $450 simple interest in 2 years,

    she will pay (450/2) = $225 simple interest each year.

    225 / 3000 = 0.075 = 7.5 %
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