Answer:
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 = [tex]\frac{2370}{26000} *100[/tex] = 9.11 %
So the average rate of interest is 9.11 %.
