Question

If #2500.00 amounted to #3500.00 in 4 years at simple interest, find the rate at which the interest was charged

Answer 1

Answer:

Rate (R) = 10% pa

Step-by-step explanation:

given,

Time (T) = 4 years

Principal (P) = 2500

Amount (A) = 3500

then,

Interest (I) = A - P = 3500 - 2500 = 1000

now,

Rate (R) = Interest × 100 / P × T

= 1000 × 100 / 2500 ×4

= 100000 / 10000

= 10 % pa