Question

Find the annual interest rate I equals $562.50 P equals to $1500 T equals five years

Answer 1

Answer: The rate is 7.5%.

Step-by-step explanation: The formula to calculate simple interest is:

Interest = Principal x Rate x Time

So, we need to plug our information into the formula:

$562.50 = $1,500 x R x 5

Now, perform the multiplication that you can:

$562.50 - $7,500R

Next, divide both sides by $7,500:

.075 = R

Therefore, the rate is 7.5%.