Answer to Question #264332 in Financial Math for sumu

Question

Find the rate of simple interest per annum for

(a) $2000 amount to $2110 in one year

Answer 1

Interest =Amount $-$ Principal

Interest =$2110$-$ $2000

Interest =$110

$Interest (I) =\frac {PRT} {100}$

$110=\frac {2000×R×1}{100}$

$110×100=2000r$

$11,000=2000r$

$r=5.5\%$