Question

Simple interest interest: $45principal:$600rate: xtime:3yrs

Answer 1

To determine the rate, substitute the given values into the following equation:

`I\text{ = Prt}`

where I is the amount of the interest, P is the principal amount, r is the rate, and t is the time in years.

Thus, we have:

`45=600(x)(3)`

Simplify the right side of the equation. Multiply 600 and 3.

`45=1800x`

Divide both sides of the equation by 1800.

`\begin{gathered} (45)/(1800)=(1800x)/(1800) \\ 0.025=x \end{gathered}`

Therefore, the rate is 0.025 or 2.5%.