Four loan balances are $6,500, $3,600, $5,400, and $7,500, respectively. The current interest rates for the loans are 7%, 5%, 6%

Question

3 years ago

9

Four loan balances are $6,500, $3,600, $5,400, and $7,500, respectively. The current interest rates for the loans are 7%, 5%, 6%

, and 9%, respectively. If the four are to be consolidated into one loan, what is the WEIGHTED AVERAGE interest rate on that loan?
A) 6.75%
B) 7.01%
C) 7.04%
D) 7.10%

Mathematics

2 answers:

Ainat [17] · Answer 1 · 2022-08-14T19:25:56+03:00

Ainat [17]3 years ago

8 0

Answer:

7.10% is the answer.

My name is Ann [436] · Answer 2 · 2022-08-14T18:03:45+03:00

My name is Ann [436]3 years ago

5 0

[(455 + 180 + 324 + 675)/(65 + 36 + 54 + 75)] = 7.10

Answer is D.