Question

Calculate the rate of interest if principle is 6000 time is two years and interest 3000

Answer 1

We conclude that the interest rate required to accumulate simple interest of $3,000 from a principal of $ 6,000.00 over 2 years is 25% per year.

Explanation:

Given

Principle P = 6000

Time period t = 2 years

Interest I = 3000

To determine

Interest rate r = ?

Using the formula

I = Prt

r = I / Pt

substituting P = 6000 , t = 2, and I = 3000

r = 3000 / ( 6000 × 2 )

r = 3000 / 12000

r = 0.25

convering the decimal into percentage: 0.25×100 = 25%

r = 25%

Therefore, we conclude that the interest rate required to accumulate simple interest of $3,000 from a principal of $ 6,000.00 over 2 years is 25% per year.