Answer:
The interest rate required to accumulate simple interest of $ 45.00 from a principal of $600.00 over 2 years is 3.75% per year.
Step-by-step explanation:
Given
l = $45
P = $600
t = 2 years
To determine
What is the annual interest rate = r = ?
Using the Simple Interest Formula
I = Prt
r = I/Pt
substituting l = 45, P = 600 and t = 2 years
r = 45 / ( 600 × 2 )
= 0.0375
converting r decimal to a percentage = 0.0375 * 100 = 3.75% per year
Thus, the interest rate required to accumulate simple interest of $ 45.00 from a principal of $600.00 over 2 years is 3.75% per year.
