Question

If the simple interest on ​$3,000 for 5 years is ​$1,050 , then what is the interest​ rate?

Answer 1

Explanation:

Step 1 :Write all the given value

Given

Princilal(P)= $3000

Time(T) =5year

Intrest(I) = $1050

Rate(R) =?

Step 2 : Finding rate using simple intrest formula

We know that

I =PTR/100

or 100I =PTR

or R =100I/PT

= 100* 1050/(5*3000)

= 105 /(5*3)

= 105/15

= 7%pa

Therefore Rate is 7%pa