Equation: r = (1/t)(A/P - 1) Calculation: Solving our equation: r = (1/2)((2320/2000) - 1) = 0.08 r = 0.08
Converting r decimal to R a percentage R = 0.08 * 100 = 8%/year
The interest rate required to get a total amount, principal plus interest, of $2,320.00 from simple interest on a principal of $2,000.00 over 2 years is 8% per year.
