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?

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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) About Me  (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) About Me  (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