The interest rate on a car loan has decreased 237 over the l

The interest rate on a car loan has decreased 23.7% over the last 10 years and is now 8.9%. What was the rate 10 years ago?
(Express your answer rounded correctly to the nearest tenth of a percent!)

Solution

Dear Student Thank you for using Chegg !! Let the interest rate 10 years before be r% => Rate Now = r% - 23.7% of r% = 8.9% (Given) r (1- 0.237) = 8.9 r = 12 Hence rate 10 years before was 12% Solution