Hilaria borrwoed

Question

$11000 from her grandfather to pay for college. Five years later, she paid him back the $11000 plus $1650 interest. What was the rate of simple interest?

Answer 1

interest per year = 1650/5 = 330

100 * (330/11000) = ???

Answer 2

Po*r*t = 1650.
11,000*r*5 = 1650.
r = 0.03/yr. = 3%/yr.
So APR = 3%.