Question

Ethan invests £500 in the bank for 2 years he earned £40 simple interest

Answer 1

Rate = 4%

Explanation:

principal = £500

time = 2 years

simple interest = £40

rate = ?

simple interest = PTR / 100

£40 = £500*2*R /100

£40*100 = £1000*R

£4000/£1000 = R

4 % = R