Keisha borrowed $300 from a bank for 5 years and was charged simple interest. The total interest that she paid on the loan was $120. As a percentage, what was the annual interest rate of her loan?
Added by Alicia V.
Step 1
Since Keisha paid a total of $120 in interest over 5 years, we can find the annual interest by dividing the total interest by the number of years: Annual interest = $\frac{120}{5}$ = $24$ Now, we need to find the annual interest rate. To do this, we can use the Show more…
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