Question

simple interest interest: $45principal:$600rate: xtime:3yrs

Answer 1

To determine the rate, substitute the given values into the following equation:

$I\text{ = Prt}$

where I is the amount of the interest, P is the principal amount, r is the rate, and t is the time in years.

Thus, we have:

$45=600(x)(3)$

Simplify the right side of the equation. Multiply 600 and 3.

$45=1800x$

Divide both sides of the equation by 1800.

$\begin{gathered} \frac{45}{1800}=\frac{1800x}{1800} \\ 0.025=x \end{gathered}$

Therefore, the rate is 0.025 or 2.5%.