Question

If the simple interest on ​$1,000 for 8 years is ​$​ 480 then what is the interest​ rate?

Answer 1

6%

Explanation:

Given data

Principal = ​$1,000

Time= 8 years

Simple interest= ​​$480

The expression for the simple interest is

Simple interest= PRT/100

Substitute

480= 1000*R*8/100

Cross multiply

480= 8000R/100

480*100= 8000R

48000= 8000R

Divide both sides by 8000

R= 48000/8000

R=6%