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20-04-2017
Mathematics

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three years ago, Ava lent her sister $400 to buy some clothes. Today Ava’s sister pay her loan in full with $454. What simple annual interest rate did she pay?

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Aliwohaish12 Aliwohaish12

20-04-2017

454=400(1+3r)
Solve for r
r=((454÷400)−1)÷3
r=0.045*100=4.5%

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