Final answer:
To find the annual interest rate, divide the total interest by the product of the principal and the time ($180/$2,250), resulting in a rate of 0.08 or 8%.
Step-by-step explanation:
The question involves finding the interest rate when given the principal, interest amount, and time. To solve for the rate, we use the formula Interest = Principal × rate × time. Substituting the given values into the formula:
$180 = $1,000 × rate × 2.25 years
To find the rate, we isolate it by dividing both sides of the equation by the principal and the time:
rate = $180 / ($1,000 × 2.25)
rate = $180 / $2,250
rate = 0.08
Therefore, the annual interest rate required for a principal of $1,000 to accrue $180 in interest over 2.25 years is 8%.