Question

What interest rate would yield P1,200 interest on P10,000 in 2 years?

Answer 1

beLet the interest rate is r%

By question

$\begin{gathered} 10000\times\frac{r}{100}\times2=1200 \\ 2\times100\times r=1200 \\ r=\frac{1200}{200} \\ r=6 \end{gathered}$

So the interest rate is

6%