Question

What rate percent per annum will $200 yield $25 interest in 2½ years

a. 10%
b. 5%
c. 4%
d. 4.5%​

Answer 1

5%

Explanation:

P=$200

T= 2½ years

S.I=$25

R= ?

S.I = P×R×T/100

25= 200×R×5/2×100

25= 1000R/200

25=5R

R=25/5

R=5%