Question

If $1900 earned simple interest of $56.28 in 6 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

rate of interest = 5.92%

Explanation:

Given,

• Principle value,P = $1900

• interest earned, I = $58

• time, T = 6 months

`=(6)/(12)\ year`

= 0.5 year

As the interest is being calculated according to the rule of simple interest.

so, Simple interest can be given by,

`I\ =\ (P* R* T)/(100)`

`=>\ 56.25\ =\ (1900* R* 0.5)/(100)`

`=>\ R\ =\ (56.25* 100)/(1900* 0.5)`

= 5.92

so, the simple rate of interest is 5.92% annually.