Question

Ethan invested £500 in the bank for 2 years.

he earned £40 simple interest total.
what was the simple interest rate per annum

Answer 1

4%

Solution,

Principal=£ 500

Time=2 years

Interest=£40

Rate=?

Now,

R=I*100/P*T

= 40*100/500*2

=4000/1000

=4%

Hope it helps

Good luck on your assignment

Answer 2

`4\%`

Explanation:

`p = 500 \\ r = x \\ t = 2`

`simple \ \: \: \: = (prt)/(100) \\ interest \\ \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: 40= (500 * x * 2)/(100) \\ \: \: \: \: \: \: \: 40 \: \: \: \: \: \: \: \: \: = (1000x)/(100) \\ (40 * 100)/(1000) = x \\ x = 4`