Question

Suppose you invested $1200 for 6 years. You earned $396 in simple interest at the end of the 6 years what is the annual interest rate

Answer 1

Answer:

rate of interest=R=5.5%

Step-by-step explanation:

given principle=P=$1200

simple interest=S.I=$396

time=T=6 years

simple interest=$\frac{P\times R\times T}{100}$

$396=$\frac{1200\times R\times 6}{100}$

$396=$72\times R$

R=$396\div 72$

R=5.5%

rate of interest=R=5.5% answer