9
QuizMultiple Choice

Financial Institutions and Banking

Question 9 • FL-2106020-M/J Civics Advanced B

Tran got a loan of $10,000 from the bank to help pay for his new car. He agreed to pay $800 in interest for the use of this money.Which equation shows the interest rate that Tran is paying?

Answer
8
800 ÷ 10,000 = .08
1
10,000 ÷ 800 = 12.5
1
10,000 – 800 = 9,200
1
10,000 + 800 = 10,800

Explanation

The interest rate is the interest paid divided by the amount borrowed. Tran pays $800 in interest on a $10,000 loan, so 800 ÷ 10,000 = 0.08, or 8%. The equation 800 ÷ 10,000 = .08 is choice A.

AI-written and checked against the verified answer.

Previous
Next