Question

jamerra received a $3000 car loan .she plans on paying off the loan in 2 years ,jammerra will have paid $450 in interest .what is the simple interest rate on the car loan?

Answer 1

Jammera received a $3000 car loan.
She’ll be paying this for 2 years with an interest of 450 dollars.
Let’s find out the interest rate that was charge to Jammera’s car loan.
=> 3 000 dollars * 0.5 = 1500, thus, we’re sure that the interest rate is less than 50%
=> Let’s try 25%
=> 3000 * .25 = 750 (interest rate is also less than 25%)
=> Let’s try 15%
=> 3000 x .15
=> 450 dollars
Thus, the interest rate is 15% for 2 years.