Question

Suppose you invested $1200 for 6 years. You earned $396 in simple interest at the end of the 6 years what is the annual interest rate

Answer 1

rate of interest=R=5.5%

Explanation:

given principle=P=$1200

simple interest=S.I=$396

time=T=6 years

simple interest=
`(P* R* T)/(100)`

$396=
`(1200* R* 6)/(100)`

$396=
`72* R`

R=
`396/ 72`

R=5.5%

rate of interest=R=5.5% answer