Debbie Mc Adams paid 8% interest on a $12,500 loan balance. Jan Burke paid $5,000 interest on a $62,500 loan. Based on 1 year: (what was the amount of interest paid. What was the interest rate paid by Jan?

Please show your work or explain where you are having issues so we can give you help in solving the problem.

First you have to know the interest formula, which is: Principal * Rate * Time = Interest. Since you already know 3 amounts simply rearrange your formula to solve for the unknown amount.

So Rate = Interest / (Principal * Time)