Question

If the simple interest on $800 for 3 years is $54, what is the rate of interest per annum

Answer 1

The rate of interest per annum is 3%.

Explanation:

The rate of interest per annum is 3%.

This can be calculated using the formula:

Simple Interest = (Principal x Rate x Time) / 100

In this case, we know that the Simple Interest = $54 and the Principal = $800, Time = 3 years.

So, we can rearrange the formula to solve for the Rate:

Rate = (Simple Interest x 100) / (Principal x Time)

Plugging in the given values, we get:

Rate = (54 x 100) / (800 x 3)

Rate = 3%