Question

Find the missing value. Round your answer to the nearest tenth of a percent. Principal: 1,000, Rate: ?, Time: 4 years, simple interest: 336

Answer 1

Given:

Principal = 1000

Time = 4 years

Simple interest = 336

Find: rate.

Sol:.

Formula of simple interest:

$\begin{gathered} S\mathrm{}I\mathrm{}=\frac{P\times R\times T}{100} \\ S\mathrm{}I\mathrm{}=\text{Simple interest} \\ P=\text{ Principal amount} \\ R=\text{ Rate} \\ T=\text{ Time} \end{gathered}$$\begin{gathered} SI=\frac{P\times R\times T}{100} \\ 336=\frac{1000\times R\times4}{100} \\ 336=40R \\ R=\frac{336}{40} \\ R=8.4 \end{gathered}$

So the rate is 8.4