Question

kennenth lent his neice $1,200 to by a computer. Two years later, she paid him back the $1,200, plus $96 interest. What was the rate of simple interest.

Answer 1

Answer:

4%

Step-by-step explanation:

1200/96 = 12.5

12.5 over a span of 2 years = 25

100/25 = 4

4% interest

Checking:

2 years = (100% + 4% + 4 %) * 1200 = 1296

1296 - 96 = 1200