Tran got a loan of $10,000 from the bank to help pay for his new car. He agreed to pay $800 in interest for the use of this money.
Which equation shows the interest rate that Tran is paying?
800 ÷ 10,000 = .08
10,000 ÷ 800 = 12.5
10,000 – 800 = 9,200
10,000 + 800 = 10,800
The correct equation is:
800 ÷ 10,000 = .08
This equation shows that Tran is paying an interest rate of 8%.