Question

Find the annual interest rate. $I=\$160$ , $P=\$2000$ , $t=8$ months The annual interest rate is %.

Answer 1

12

Explanation:

It would be: r = I * 100 / P * R

r = 160.67 * 100 / 2000 * 2/3

r = 16067*3 / 4000

r = 48201 / 4000

r = 12

Answer 2

`1\%`

Explanation:

Simple interest (I) = $160

Principal amount (P) = $2000

Time period (t) = 8 months

Let R denotes rate of interest.

Relation between simple interest, principal amount, time and rate of interest is given by
`I=(PRT)/(100)`

`160=(2000(R)(8))/(100) \\\\160=160R\\R=1\%`