We conclude that the interest rate required to accumulate simple interest of $3,000 from a principal of $ 6,000.00 over 2 years is 25% per year.
Step-by-step explanation:
Given
Principle P = 6000
Time period t = 2 years
Interest I = 3000
To determine
Interest rate r = ?
Using the formula
I = Prt
r = I / Pt
substituting P = 6000 , t = 2, and I = 3000
r = 3000 / ( 6000 × 2 )
r = 3000 / 12000
r = 0.25
convering the decimal into percentage: 0.25×100 = 25%
r = 25%
Therefore, we conclude that the interest rate required to accumulate simple interest of $3,000 from a principal of $ 6,000.00 over 2 years is 25% per year.
