Answer:
6400 AED
9.14%
yes. The interest rate is 9.14%. This is less than 10%
Step-by-step explanation:
Interest amount she would pay = total of loan to be repaid - amount borrowed
16,400 - 10,000 = 6,400 AED
Interest = loan x interest rate x time
we have all the parameters of the above equation apart from the interest rate. We can thus determine the interest rate from the above equation
6,400 AED = 10,000 x interest rate x 7
6,400 AED = 70,000 x interest rate
Divide both sides by 70,000 to find a value for interest rate
interest rate = 0.091429 = 9.14%
