200=800(x)(24) calculated

Question

an $800 deposit for 24 months earned a $200 interest. what is the simple interest rate?

Answer 1

let x%= annual interest rate

deposit = $800

interest earning period = 24 months = 24/12 years

interest earned = $200

so $200 = $800 * x /100* 24/12

200 = 800 * x/100 * 2

solve for x, x = 12.5% per annum