Question

If the simple interest on $2000 for 2 years is $320, then what is the interest rate?

Answer 1

To find the interest rate, we can use the formula for simple interest: Interest = Principal × Rate × Time. In this case, the principal is $2000 and the interest is $320. The interest rate is 8%.

Step-by-step explanation:

To find the interest rate, we can use the formula for simple interest: Interest = Principal × Rate × Time. In this case, the principal is $2000 and the interest is $320. We can plug these values into the formula and solve for the rate:

$320 = $2000 × Rate × 2

Dividing both sides of the equation by $4000 (2000 × 2), we get:

Rate = $320 ÷ $4000 = 0.08 = 8%

Answer 2

Answer : The interest rate is, 8 %

Step-by-step explanation :

Given:

Principle = $2000

Simple interest (S.I) = $320

Time = 2 years

Now we have to determine the interest rate.

Formula used :

`S.I=(PRT)/(100)`

where,

P = principle

R = interest rate

T = time

S.I = simple interest

Now put all the given values in the above formula, we get:

`\$320=((\$2000)* R* (2))/(100)`

`R=(\$320* 100)/((\$2000)* (2))`

`R=8\%`

Thus, the interest rate is, 8 %