Question

If the simple answer interest on 2,000 for 10 years is 1,600, then what is the interest rate

Answer 1

8%

Explanation:

Solving our equation

r = 1600 / ( 2000 × 10 ) = 0.08

r = 0.08

converting r decimal to a percentage

R = 0.08 * 100 = 8%/year

The interest rate required to

accumulate simple interest of $ 1,600.00

from a principal of $ 2,000.00

over 10 years is 8% per year.