Question

The interest rate on $2000 for 2 years is $350. what is the simple interest rate ?

Answer 1

Answer:

8.75%

Step-by-step explanation:

The formula for calculating simple interest (I) is

I = $\frac{PRT}{100}$

where P is the principal, R the rate of interest and T the time in years

here I = 350, P = 2000 and T = 2, hence

350 = $\frac{2000(2)R[tex] = [tex]\frac{4000R}{100}$

multiply both sides by 100

35000 = 4000R ( divide both sides by 4000 )

R = 8.75%