Question

Rajiv puts $2400 in a savings account.

One year later it is worth $2580

Work out the annual rate of interest.​

Answer 1

Given : Principal - $2400

Amount - $2580

Time - 1 year.

Find : Annual rate of interest.

Solution : The formula concerning simple interest is = P*R*T/100. In the formula, P stands for principal amount, R stands for rate of interest and T stands for time.

Interest will be calculated as = Amount - Principal.

Interest = 2580 - 2400 = $180

Keeping the values in equation-

R = (180*100)/(2400*1)

R = 7.5%

Thus, annual rate of interest is 7.5%.