Question

How to find the simple interest rate if P=$4,000. T=2 years . And I= $320

And pls explain how I can find simple interest in every question bc I’m stressing about math finals

Answer 1

3.2

Explanation:

Formula to find the simple interest rate :

S.I. =
`(PRT)/(100)`

Formula to find R (simple interest rate) :

R =
`(100*S.I.)/(P*T)`

Since you have I (interest amount), we can use this formula instead :

R =
`(I)/(PT)`

R =
`(320)/(4,000*2)` = 4%/year or 0.04

Now plug this into the first formula

S.I. =
`(4,000*0.04*2)/(100)` = 3.2

i haven't done this in a while so hope this helps !!