Question

The simple interest on $900 for 2 years is $900. Calculate the rate of interest

Answer 1

Using the formula for the simple interest, we have:

S = P(R)(T) ( S: simple interest, P: principal, R: interest rate, T: time)

900 = 900(R)(2) (Replacing the values)

1 = (R)(2) (Dividing by 900 on both sides of the equation)

0.5 = R (Dividing on both sides of the equation by 2)

0.5 is equivalent to 50%

The answer is 50%.