The interest rate on $2000 for 2 years is $350. what is the simple interest rate ?

Question

asked Oct 14, 2020 13.0k views

1 Answer

Resu · Answer 1 · 2020-10-18T14:19:33+0000

Answer:

8.75%

Explanation:

The formula for calculating simple interest (I) is

I =
(PRT)/(100)

where P is the principal, R the rate of interest and T the time in years

here I = 350, P = 2000 and T = 2, hence

350 =
$\frac{2000(2)R[tex] = [tex](4000R)/(100)$

multiply both sides by 100

35000 = 4000R ( divide both sides by 4000 )

R = 8.75%