You lend your sister's daughter $2,000 for a year, and at the end of the year she pays you $2,180. The interest rate you are charging her is

A) 1.1%.
B) 9%.
C) 10%.
D) 20%.

Question

You lend your sister's daughter $2,000 for a year, and at the end of the year she pays you $2,180. The interest rate you are charging her isA)  1.1%.B)  9%.C)  10%.D)  20%.

Huynh Kim Ngan · Accepted Answer

Final Answer : B, Explanation :  The interest is $2,180 - $2,000 = $180. The interest rate is $180 / $2,000 * 100% = 9%.

You lend your sister's daughter $2,000 for a year, and at the end of the year she pays you $2,180. The interest rate you are charging her is

A) 1.1%.
B) 9%.
C) 10%.
D) 20%.

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Learning Objectives

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