Question

A principal of $480 earns $108 interest in 5 years . what rate of interest was being paid?​

Answer 1

4.5%

Explanation:

Solving our equation

r = 108 / ( 480 × 5 ) = 0.045

r = 0.045

converting r decimal to a percentage

R = 0.045 * 100 = 4.5%/year

The interest rate required to

accumulate simple interest of $ 108.00

from a principal of $ 480.00

over 5 years is 4.5% per year.