Question

If $7,500 investment earns $450 over 3 years what's the interest rate

Answer 1

Answer:

Rate is 2%

Step-by-step explanation:

Step one:

given data

Principal= $7500

Simple interest= $450

time=3 years.

Applying the simple interest formula which is

SI=PRT/100

Step two:

substitute we have

450=7500*R*3/100

cross multiply we have

45000=22500R

divide both sides by 22500

R=45000/22500

R=2%