Question

What is the interest rate if a principal of $213 earns $42.60 in interest in five years?

Answer 1

Answer:

Step-by-step explanation:

Interest = P*r*t/100

$42.60=\frac{213*r*5}{100}\\\\213*r*5=42.60*100\\\\213*r*5=4260\\\\r=\frac{4260}{5*213}\\\\r=4$

Rate of interest = 4%

Answer 2

Step-by-step explanation:

Solution

here

principal=$213

time=5 years

interest=$42.60

now,

rate of interest=42.50*100/213*5

=4250/1065

=3.990%