Answer
Interest rate = 6%
Explanation
From the information given in the question,
Interest, I = ₱1,200
Principal, P = ₱10,000
Time, T = 2 years
Interest rate, R = ?
Using Simple Interest formula:
[tex]I=\frac{PRT}{100}[/tex]Since I, P and T are know, we shall substitute these values into the formula to get R.
[tex]\begin{gathered} 1200=\frac{10000\times R\times2}{100} \\ 1200=200R \\ \text{Divide both sides by 200} \\ \frac{1200}{200}=\frac{200R}{200} \\ R=6 \end{gathered}[/tex]Therefore, the interest rate is 6%
