Question

If the simple interest on $2,000 for 5 years is $900, then what is the interest rate?The rate is %.

Answer 1

Simple interest rate

Value initial = 2000

Final value = 2900

Interest = Vi• r • t/100

henT

Then

900 = 2000•r •5/100

r = 900•100/ (2000•5) = 90000/10000= 9

Therefore interest rate IS = 9%