Question

If the simple interest on $2,000 for 2 year is $320 then what is the interest rate

Answer 1

Answer: 8%

Explanation:

Answer 2

8%

Explanation:

I = PRT (Interest = Principal x Rate x Time)

Note that:

Interest = $320

Principal = $2000

Time = 2 years

Plug in the corresponding number to the corresponding variables.

320 = (2000)(r)(2)

Simplify. Combine like terms.

320 = (4000)r

Isolate the variable, r. Divide 4000 from both sides.

(320)/4000 = (4000r)/4000

r = 320/4000

r = 0.08

Change the decimal into a percentage.

r = 0.08 = 8/100 = 8%

8% is your interest rate.

~