Question

I=$70, P=$700, t=4 years

Answer 1

2.5%

Explanation:

Subsitute the values into the formula, I =Prt...

I = Prt

=> 70 = 700 × r × 4

=> 70 = 2800r

To find r, divide both sides of the equation with 2800...

70 ÷2800 = 2800r ÷2800

=> 0.025 = r

Hence, r = 0.025

Now, r should be in %. So, let's convert 0.025 to percent...

r = 0.025 × 100%

= 2.5%