A loan company dropped the interest rate it charges on second mortgages from 9.5% to 7.9%. What percent reduction did this represent?
A) 16%
B) 16.8%
C) 1.6%
D) 20.3%
E) 15.7%

Question

Quizplus · Accepted Answer

The percent reduction in the interest rate can be calculated using the formula for percentage decrease: $\frac{Old Rate - New Rate}{Old Rate} \times 100$. Substituting the given values, we get $\frac{9.5\% - 7.9\%}{9.5\%} \times 100 = \frac{1.6}{9.5} \times 100 = 16.8\%$.

A Loan Company Dropped the Interest Rate It Charges on Second