Answer:
R = 1.2%
Explanation:
Given the following data;
Principal = 425
Time = 2
Simple interest = 10.20
To find the annual interest rate;
Mathematically, simple interest is calculated using this formula;

Where;
- S.I is simple interest.
- P is the principal.
- R is the interest rate.
- T is the time.
Substituting into the equation, we have;


Cross-multiplying, we have;


R = 1.2%
Therefore, the annual interest rate is 1.2 percent.