Answer : The annual interest rate was, 8.5 %
Step-by-step explanation :
Given:
Principle = $17,500
Simple interest (S.I) = $2975
Time = 2 years
Now we have to determine the interest rate.
Formula used :
where,
P = principle
R = interest rate
T = time
S.I = simple interest
Now put all the given values in the above formula, we get:
Thus, the annual interest rate was, 8.5 %