Question

What is the rate of the interest on $560 for two years is $145.60?

Answer 1

The rate of interest is 13%.

Explanation:

Given,

Principal (P) = $560

Interest (I) = $145.60

Time (T) = 2 years

To find the rate of interest

Formula

If P principal was invested for T years at r% simple interest, the interest will be I =
`(PTr)/(100)`

So,

Putting the values of P, I, T we get,

145.60 =
`(560X2Xr)/(100)`

or, r =
`(145.60X100)/(2X560)`

or, r = 13%

Hence,

The rate of interest is 13%.