Answered: Rita borrowed $4000 from a bank for 5…

Rita borrowed $4000 from a bank for 5 years and was charged simple interest. The total interest that she paid on the loan was $1600. As a percentage, what was the annual interest rate of her loan?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter7: Losses—deductions And Limitations

Section: Chapter Questions

Problem 71IIP

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Question

Rita borrowed $4000 from a bank for 5 years and was charged simple interest. The total interest that she paid on the loan
was $1600. As a percentage, what was the annual interest rate of her loan?
If necessary, refer to the list of financial formulas.

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