Answer: The annual interest rate is 1.06%
Step-by-step explanation: This is a simple interest computation.
The formular for a simple interest is given as;
I = (P ×R × T)/100
Where I represents the interest paid,
P represents Principal borrowed at the beginning
R represents the rate at which the interest is calculated
T represents the Time measured in number of years
If the interest is calculated as I = (P×R×T)/100, we should first of all make R the subject of the formular;
Multiply both sides by 100
100I = P×R×T
Divide both sides of the equation by P and T
(100I)/(P × T) = R
Now we can insert the values into the rearranged formular
(100 × 143)/(4500 × 3) = R
14,300/13,500 = R
143/135 = R
1.0592592593 = R
Therefore, R which is the rate of interest equals approximately 1.06%
