Question

If the simple interest on $800 for 3 years is $54. What is the rate of interest per annum?

Answer 1

Answer:

Having checked, interest is $54 when rate is 2.25%. Therefore, the answer (rate = 2.25 %) is correct.

Answer 2

The rate of interest per annum is 2.25%

Given : The simple interest on $800 for 3 years is $54.

To find : The rate of interest per annum.

Solution :

We can simply solve this mathematical problem by using the following mathematical process. (our goal is to calculate the rate per annum)

Here, we will be using the following mathematical formula.

Simple interest = (P × R × T)/100

Here,

• P = Principal amount
• R = Rate per annum
• T = Time

In this case,

• P = $800
• R = Let, x
• T = 3 years

By, putting the available data, in the above mentioned mathematical formula, we get :

54 = (800 × x × 3)/100

24x = 54

x = 54/24

x = 2.25

The rate per annum = x% = 2.25%

Hence, rate per annum is 2.25%