Dominic pays 7% interest on his $15,000 college loan and 12% interest on his 11,000 car loan. What average interest rate does he pay on the total $26,000 he owes?

Average rate of interest is 9.11 %.

Step-by-step explanation:

Dominic pays 7 % interest on $15,000.

So the interest amount he pays in a year for $15,000 = 0.07 * 15000 = $ 1050.

Now domic pays another loan at the rate of 12 % on $11,000.

The interest amount he pays in a year for $11,000 = 0.12 * 11000 = $1320.

The total interest amount paid in a year = $ ( 1050 + 1320 ) = $2370.

The amount of loan = $ 26,000.

The average rate of interest = = 9.11 %

So the average rate of interest is 9.11 %.

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step-by-step explanation: