Question

Item 19
You put $100 in an account. The account earns $2 simple interest in 6 months. What is the annual interest rate?

Answer 1

We know

Simple Interest = (P*R*T)/100

P = 100

R = ?

T = 1/2 year

2 = (100 * R * 0.5)/100

R = 2/0.5 = 4% per annum

Answer 2

Answer:

4

2$ for 6months

then 4$ for 12 months i.e 1 year