Question

If $1600 earned simple interest of $56.24 in 2 months, what was the simple interest rate? The simple interest rate is % (Do not round until the final answer. Then round to the nearest tenth as needed.)

Answer 1

`\$21.1`

Explanation:

We know that for principal amount P , time period T and rate of interest
`R\%` , simple interest is given by
`S.I. = (P* R* T)/(100)` .

Here ,

`P=\$1600\\T=2\,\,months=(2)/(12)\,\,years=(1)/(6)\,\,years\\S.I=\$56.24`

To find : simple interest rate i.e.,
`R\%`

On putting values of
`P\,,\,T\,,\,S.I` in formula , we get
`S.I. = (P* R* T)/(100)`

`56.24 = (1600* R* 1)/(600)\\R=(56.24* 600 )/(1600)=(703* 3)/(100)=\$21.09`

Now we need to round off the answer to the nearest tenth .

So, simple interest rate is % =
`\$21.09` =
`\$21.1`