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If the simple interest on ​$2000 for 10 years is ​$1200​, then what is the interest​ rate?

1 Answer

4 votes

Answer:

6%

Explanation:

Solving our equation

r = 1200 / ( 2000 × 10 ) = 0.06

r = 0.06

converting r decimal to a percentage

R = 0.06 * 100 = 6%/year

The interest rate required to

accumulate simple interest of $ 1,200.00

from a principal of $ 2,000.00

over 10 years is 6% per year.

User David Ten Hove
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