Question

The simple interest on an investment of $3600 over 2 years is $504. Find the interest rate to the nearest one decimal place.

Answer 1

7%

Explanation:

Given data

Principal= $3600

Time= 2 years

SImple interest= $504

The expression for the simple interest is given as

SI= PRT/100

We want to find the rate R

504= 3600*R*2/100

cross multiply'

504*100= 3600*R*2

50400= 7200R

divide both sides by 7200

R= 50400/7200

R= 7%

Hence the rate is at 7%