Question

Suppose Serena invests the $2,500 for 3 years and earns $255.What was the rate of interest?

Answer 1

3.4%

Explanation:

Here, Principal= $2500

Simple Interest= $255

Time= 3 years

we have to find the rate of interest

Rate of interest=
`(simple interest. 100)/( p. t)`

Rate=
`(255)/(2500)`×
`(100)/(3)`

Rate of interest= 34%

Hence, rate of interest is 3.4%

Hence, the correct answer is 3.4 %

Answer 2

I=PRT
P for Principle Amount
R for Rate
T for Time in years

255 = 2500 × r × 3
255 = 7500 × r
Divide by 7500 on both sides to isolate r

`(255)/(7500)` =
`(7500 * r)/(7500)`
7500 and 7500 cancels out

0.034 = r
0.034 × 100 = 3.4% (to convert it as a percentage)
Rate of Interest: 3.4%