Answer:
2 %
Step-by-step explanation:
Money borrowed, Principal, P = $ 700
time of investment, T = 3 years
Total interest paid, Simple interest, S.I = $ 42
Let the rate of interest is R.
Use the formula for simple interest.
![S.I. =\frac{P\times R\times T}{100}](https://tex.z-dn.net/?f=S.I.%20%3D%5Cfrac%7BP%5Ctimes%20R%5Ctimes%20T%7D%7B100%7D)
By substituting the values
![42 =\frac{700\times R\times 3}{100}](https://tex.z-dn.net/?f=42%20%3D%5Cfrac%7B700%5Ctimes%20R%5Ctimes%203%7D%7B100%7D)
4200 = 2100 R
R = 2 %
Thus, the rate of interest is 2%.