Answer:
The annual interest rate 3%
Step-by-step explanation:
Given: I=$24 , P=$400, t=2 years
Formula: SI=PRT
where,
SI = Simple Interest (I=24)
P = Principle (P=400)
t = time period (t=2)
R = Rate of interest (R=?)
Substitute the values into formula.
24 = 400 x R x 2
R = 3%
Hence, The annual interest rate 3%
