Question

If the simple interest on $8000 for 3 years is $540, what is the rate of interest per annum?​

Answer 1

2.25%

Explanation:

I = Prt

Given:

I = 540

P = 8000

t = 3

Solve for r:

I = Prt

r = I/(Pt)

r = 540/(8000 * 3)

r = 540/24000

r = 0.0225

Rate in percentage form:

0.0225 * 100 = 2.25%