Question

If Jack borrowed $200 and repaid $226 altogether at the end of 2 years, what was the interest rate? Hint: Find the amount of interest from the repaid amount.

Answer 1

Answer: 6.5%

Step-by-step explanation:

Interest = Amount repaid - Amount borrowed

= 226 - 200

Interest = 26

Si = ( prt) / 100

26 = (200 x r x 2) / 100

26 = 4r

r = 6.5%