If a person pays back $23,000 on a one-year loan of $19,000, the interest is __________ and the interest rate is approximately __________ .

Question

Quizplus · Accepted Answer

The interest paid is the difference between the amount paid back and the original loan amount, which is $23,000 - $19,000 = $4,000. The interest rate is the interest divided by the original loan amount, then multiplied by 100 to get a percentage: ($4,000 / $19,000) * 100 = 21.05 percent.

If a Person Pays Back $23,000 on a One-Year Loan