Question

What is the simple interest rate on a $2300 investment paying $906.20 interest in 19.7 years?

Answer 1

2%

Explanation:

Given data

Principal=$2300

Simple interest=$906.20

Time= 19.7years

Required

The rate in percentage

We know that

SI=PRT/100

substitute

906.20=2300*R*19.7/100

906.20=45310R/100

cross multiply

906.20*100= 45310R

90620= 45310R

R= 90620/45310

R=2%

Hence the rate is 2%