A loan company dropped the interest rate it charges on second mortgages from 8.7% to 7.3%. What percent reduction did this represent?
A) 1.4%
B) 19.2%
C) 16.1%
D) 14%
E) 15.6%

Name: A loan company dropped the interest rate it charges on second mortgages from 8.7% to 7.3%. What percent reduction did this represent? A) 1.4% B) 19.2% C) 16.1% D) 14% E) 15.6%
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The percent reduction is calculated by the formula: ((Old Rate - New Rate) / Old Rate) * 100. So, ((8.7 - 7.3) / 8.7) * 100 = 16.1%.

A Loan Company Dropped the Interest Rate It Charges on Second