Question

If the simple interest on $400 for 3 years is $27, what is the rate of interest per annum ?

Answer 1

To find the rate of interest per annum, we can use the formula for simple interest:

Simple Interest = (Principal * Rate * Time) / 100

Given that the principal (P) is $400, the time (T) is 3 years, and the simple interest (I) is $27, we can rearrange the formula to solve for the rate (R):

R = (I * 100) / (P * T)

Plugging in the values, we get:

R = (27 * 100) / (400 * 3) = 2.25%

Therefore, the rate of interest per annum is 2.25%.