Question

determine the simple interest rate applied to a principal over 20 years , if the total interest paid equals to the borrowed principal.

Answer 1

i hope this can help you...

Answer 2

The rate of the interest is 5%

Given data :

Time given for the interest = 20 years

And, according to the circumstances mentioned in the

The amount of the interest = The total amount of the principal money

Let, the rate = r% ( assume, r = variable to calculate the rate of interest)

And, the principal = interest = x ( assume, x = variable to calculate the rate of interest)

• Now,we have calculate the amount of interest by using the following formula :

I = P×R×T

• Now,

Interest = ( Principal × Rate × Time)/100

x = (x × r × 20)/100

x = rx/5

5x = rx

rx = 5x

r = 5

So,the rate of the interest is 5%. (Answer)