Question

General MathematicsProblem:What interest rate would yield ₱1,200 interest on ₱10,000 in 2 years?

Answer 1

Interest rate = 6%

Step-by-step explanation

From the information given in the question,

Interest, I = ₱1,200

Principal, P = ₱10,000

Time, T = 2 years

Interest rate, R = ?

Using Simple Interest formula:

`I=(PRT)/(100)`

Since I, P and T are know, we shall substitute these values into the formula to get R.

`\begin{gathered} 1200=(10000* R*2)/(100) \\ 1200=200R \\ \text{Divide both sides by 200} \\ (1200)/(200)=(200R)/(200) \\ R=6 \end{gathered}`

Therefore, the interest rate is 6%