Lebron loaned $20,000 to his daughter to her buy a house. when she sold the house four years later, she paid him the $20,000 along with an interest of $3,000. what was the annual interest rate? round your answer to two decimal places.

3.75%

Step-by-step explanation:

Given:

Principle amount of loan = $20,000

Interest paid = $3,000

Time of loan = 4 years

Therefore, the annual interest =

or

the annual interest = = $750

Now,

The annual interest rate = tex]\frac{\textup{Interest amount per year}}{\textup{Priciple amount}}\times100[/tex]

or

The annual interest rate = tex]\frac{\textup{750}}{\textup{20,000}}\times100[/tex]

or

The annual interest rate = 3.75%

step-by-step explanation: