Question

B If $192 is earned in simple interest on a

principal of $600 invested for 4 years,
what is the rate of interest per year?

Answer 1

• 8%

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Use the formula for simple interest:

• I = PRT

where:

• I = Interest earned,
• P = Principal,
• R = Rate of interest ,
• T = Time (in years).

Substituting the given values into the formula, we get:

• 192 = 600 x R x 4
• R = 192/2400
• R = 0.08 or 8%

Therefore, the rate of interest per year is 8%.