The interest rate on a second mortgage was 8 3/4%last month. This month the interest rate is 11 1/8%. How many percentage points has the interest rate increased?

Answer 1

Set up an equation.

8 3/4 + x = 11 1/8

Isolate the variable...

x= 11 1/8 - 8 3/4

Find a common denominator (in this case, 8.) You can also, as I'm going to do, convert the mixed numbers into improper fractions.

x= 89/8 - 38/8

Now solve that, convert it back to a mixed number, and there you have it.