Question

SHOW WORK

Pete borrowed $400 for 1 year. He paid back a total of $440. What was the interest rate per year?

Answer 1

Answer:

10%

Step-by-step explanation:

He had to payback 40 more than he borrowed.

440-400=40

40 is 10% of 400, what he borrowed.

400÷10=40

Answer 2

Answer:

10%

Step-by-step explanation:

That year, he paid $40 in interest, which is 10% of the original loan.