SOLUTION: Scott took out a 4-year car loan for $5,500. He paid back a total of $7,370. What interest rate did he pay for this loan?

Question 425272: Scott took out a 4-year car loan for $5,500. He paid back a total of $7,370. What interest rate did he pay for this loan?

Found 2 solutions by stanbon, cherry precilla:
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Did he pay simple or compound interest?
Cheers,
Stan H.
Answer by cherry precilla(2) (Show Source): You can put this solution on YOUR website!
He paid an interest rate of 8.5% per annum or 34% for 4years.
$7,370 - $5,500 = $1,870
$1,870/$5,500 = 0.34 0r 34%
0.34/4 = 8.5% per annum
RELATED QUESTIONS
Pauk took a loan of 500$ for 3 years.if he paid interest at the rate of 8% per annum,how... (answered by cherry precilla)
Tom took a loan out for $5000 with an 20% interest rate, his payments was $250 a month.... (answered by solver91311)
Richard took a loan of $10,000 at a rate of 7%. If he paid $1,400 in interest, how many... (answered by mananth)
Brendan took out a loan for 3 years. The interest rate was 6%, not compounded.The amount... (answered by rfer)
1.Marina had an accident with her car and the repair bill came to $800. She didn�t have... (answered by ikleyn)
Eduardo noticed that his new car loan papers stated that with a 7.5% interest rate, he... (answered by rfer)
Chris took out a loan for $2500 and was charged simple interest at an annual rate of 9.3% (answered by Boreal)
You take out a loan of $15,000 to purchase a car. If your loan is for 3 years at a... (answered by Boreal,MathTherapy)
Robert gets a loan from his bank. He agrees to borrow �6 000 at a fixed annual simple... (answered by Theo)