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USPshnik [31]
3 years ago
9

Ed stein paid $40.00 interes tonaloan

Mathematics
1 answer:
KIM [24]3 years ago
6 0

Answer:

The rate of interest paid on the principal amount is 8%.

Step-by-step explanation:

Here, Principal Amount = $2,000

Time = 3 months = (3/ 12 ) Years = 0.25 years

Rate = R

Interest Amount  = $40

Now, as we know :

Simple Interest  = \frac{P \times R \times T}{100}

⇒40  = \frac{2,000 \times R \times 0.25}{100}\\\implies R = \frac{40 \times 100}{2000 \times 0.25}   =8

or, R = 8%

Hence, the rate of interest paid is 8%.

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