Question

Find the missing value. Round your answer to the nearest tenth of a percent. Principal: 1,000, Rate: ?, Time: 4 years, simple interest: 336

Answer 1

Given:

Principal = 1000

Time = 4 years

Simple interest = 336

Find: rate.

Sol:.

Formula of simple interest:

`\begin{gathered} S\mathrm{}I\mathrm{}=(P* R* T)/(100) \\ S\mathrm{}I\mathrm{}=\text{Simple interest} \\ P=\text{ Principal amount} \\ R=\text{ Rate} \\ T=\text{ Time} \end{gathered}`
`\begin{gathered} SI=(P* R* T)/(100) \\ 336=(1000* R*4)/(100) \\ 336=40R \\ R=(336)/(40) \\ R=8.4 \end{gathered}`

So the rate is 8.4