Question

sum of $25000 is deposited in a bank. After 8 years, the simple
interest gained was $7000. Calculate the annual rate of interest on the
account assuming it remained constant over the 8 years
Please help

Answer 1

Principle = $25000

Interest = $7000

Time period=8 years

rate of interest = I x 100

PxT

= 7000 x 100

25000 x 8

= 7 ( by cancellation method)

2

=7 = 7 x 5 = 35 = 3.5 %

2 2 x 5. 10

therefore , the rate of interest is 3.5 %