Question

ethan invested £500 in the bank for 2 years. he earned £40 simple interest in total. what was the simple interest rate per annum?

Answer 1

Answer:

4%

Step-by-step explanation:

Given:-

Principle= £500

Time= 2

Interest= £40

Rate= ?

S.I= P×T×R ÷ 100

40 = 500×2×R ÷ 100

40 = 5× 2× R

40 = 10 ×R

10 ×R = 40

R = 40÷10

R = 4

THEREFORE RATE = 4%

Answer 2

Step-by-step explanation:prt/100=40

                                           500(r/100)(2)=40

                                                             10r=40

                                                                 r=4%