Question

If the simple interest on $375 in 3 years is $168.75, find the annual rate of interest.

Answer 1

Answer:

Principle (P) = $375

Time Period (T) = 3 years

Simple Interest (S.I) = $168.75

» (P × R × T)/100 = 168.75

» 375 × 3 × R/100 = 168.75

» R = 168.75 × 100/1125

» R = 15%