Me johnson borrowed $8000 for 4years to make home improvements if he repaid a total of $10,320, at what interest rate did he borrow the money?

The rate of interest is 7.25 % per year

Solution:

Given that Johnson borrowed $8000 for 4 years to make home improvements

He repaid a total of $ 10320

To find: Rate of interest

The simple interest is given as:

Where "p" is the principal and "n" is the number of years and "r" is the rate of interest

We know that,

Total amount = principal + simple interest

10320 = 8000 + simple interest

Simple Interest = 10320 - 8000

Simple interest = 2320

Substitute S.I = 2320 and n = 4 in simple interest formula

Thus rate of interest is 7.25 % per year

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step-by-step explanation:

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