Question

If the simple interest on ​5000$ for 6 years is ​1500$​, then what is the interest​ rate?

Answer 1

R = 5%

Explanation:

The formula for calculating simple interest is given by:

`\text{Simple Interest} = \frac{{\text{Principal} * \text{Rate} * \text{Time}}}{{100}}`

Given:

Principal = $5000

Simple Interest = $1500

Time = 6 years

We can rearrange the formula to solve for the rate:

`R = \frac{{\text{Simple Interest} * 100}}{{\text{Principal} * \text{Time}}}`

Substitute the given values:

`R = \frac{{1500 * 100}}{{5000 * 6}} \\\\ R = \frac{{150000}}{{30000}} \\\\ R = 5\%`

Therefore, the interest rate is 5%.