Question

Sam borrowed Php14,500.00 for 2 years and had to pay Php2320.00 simple interest at the end of that time. What rate of interest did he pay?

Answer 1

We will use the next formula

`I=P\cdot r\cdot t`

Where

P is the principal

r is the rate

t is the time

I is the interest

we have the next information

P=14,500

t=2

I=2320

we substitute in the formula

`2320=14500(r)(2)`

We isolate the rate

`r=(2320)/(14500(2))=0.08`

The rate of interest is 8%

ANSWER

the rate of interest did he pay is 8%