Donna borrowed 300 from a bank for 4 years and was charged simple interest. The total interest that she paid was 84.00 what % was the annual interest rate of the loan

The annual interest rate of the loan was of 0.07 = 7%.

Step-by-step explanation:

This is a simple interest problem.

The simple interest formula is given by:

In which E are the earnings, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.

After t years, the total amount of money is:

.

In this problem, we have that:

4 years, so

Loan of 300, so

Interest of 84, so

We have to find I.

The annual interest rate of the loan was of 0.07 = 7%.