If a borrower had an interest rate of 5 1/4 percent and refinanced, lowering the interest rate by 3/8 percent, what is the amount of interest after refinancing?

Answer 1

5 1/4 = 5 2/8 = 42/8

42/8 - 3/8 = 39/8 = 4 7/8

Orrrrr, by borrowing.We borrow 8/8 from 5.

5 2/8 - 3/8 = 4 10/8 - 3/8 = 4 7/8