If the simple interest on ?$2,000 for 5 years is ?$700?, then what is the interest? rate?

Question

I have a test that is due tonight at 9 and normally I don't do this, but I really need this.PLs help

 

Answer 1

Hello Jasmine,

 

In simple interest, the interest charged is proportional to the interest rate

 

I = P r t

700 = 2000*r* 5

 

r = 700/10000 =0.07

 

The interest rate is 7%