Answer: The rate is 7.5%.
Step-by-step explanation: The formula to calculate simple interest is:
Interest = Principal x Rate x Time
So, we need to plug our information into the formula:
$562.50 = $1,500 x R x 5
Now, perform the multiplication that you can:
$562.50 - $7,500R
Next, divide both sides by $7,500:
.075 = R
Therefore, the rate is 7.5%.