Answer:
The simple interest is 3.80% per year.
Step-by-step explanation:
We are presented with a simple interest problem and the following information has been availed;
Accumulated amount = 5503.51
Time = 19 years
Principal = 3196
The first step is to determine the total interest earned over the entire time period;
Interest = Amount - Principal
= 5503.51 - 3196
= 2307.51
The simple interest formula states the total interest earned is equal to the product of the principal, the interest rate and the time;
[tex]I=\frac{P*R*T}{100}[/tex]
Making R the subject of the formula yields;
[tex]R=\frac{100*I}{P*T}[/tex]
Substituting the values we have and simplifying;
[tex]R=\frac{100*2307.51}{3196*19}=3.80[/tex]
The simple interest is thus 3.80% per year.
