Question

Find the annual simple interest rate. I=$17, P=$500, t=2 years

Answer 1

Using the simple interest formula I = P × r × t and rearranging to solve for the interest rate, we find the annual simple interest rate to be 1.7%.

Step-by-step explanation:

To find the annual simple interest rate, we'll use the basic simple interest formula: Interest (I) = Principal (P) × rate (r) × time (t). Given I=$17, P=$500, and t=2 years, we want to solve for r. Let's rearrange the formula to solve for the interest rate:

I = P × r × t

Divide both sides by P × t to isolate r:

r = I / (P × t)

r = $17 / ($500 × 2)

r = $17 / $1000

r = 0.017 or 1.7%

The annual simple interest rate is 1.7%.

Answer 2

The annual simple interest is 1.7%

Step-by-step explanation:

We are given I=$17, P=$500, t=2 years

Formula:

SI= PRT

where,

SI = Simple Interest (SI=$17)

P = Principle (P=$500)

R = Rate of interest (R=?)

T = Time (T=2)

Substitute the values into formula

17 = 500 x R x 2

R = 1.7%

Hence, The annual simple interest is 1.7%