Question

17. If the simple interest on $800 for three years is $54, what is the rate of interest per annum?

Answer 1

Answer:

Rate = 2.25%

Step-by-step explanation:

The question above is answered below.

$rate = \frac{100 \times i}{pt}$

Where;

i = interest

p = principal

t = time

Thus:

$rate = \frac{100 \times 54}{800 \times 3}$

$rate= \frac{5400}{2400}$

$rate = 2.25\%$

Check

In order to check whether or not the answer is correct, we can insert the rate into simple interest formula. If we get $54 as interest then rate of 2.25% is correct.

Thus

$i = \frac{p \times r \times t}{100}$

$i = \frac{800 \times 2.25 \times 3}{100}$

$i = \frac{5400}{100}$

$i = 54 \: dollars$

Having checked, interest is $54 when rate is 2.25%. Therefore, the answer (rate = 2.25 %) is correct.

Answer 2

The rate of interest per annum = 2.25%

What s simple interest?

"It is a method of calculating the interest amount for a particular principal amount of money at some rate of interest"

Formula of simple interest:

SI = P × R × T

where P = Principal,

R = Rate of Interest, and

T = Time period.

For given question,

SI = $54

P = $800

T = 3 years

R = ?

We need to find the value of R.

Using the formula of simple interest,

⇒ SI = P × R × T

⇒ 54 = 800 × R × 3

⇒ R = 54/2400

⇒ R = 0.0225

So, the rate of interest is 0.0225 × 100 = 2.25%

Therefore, the rate of interest per annum = 2.25%

Learn more about the simple interest here:

https://brainly.com/question/22621039

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