The annual rate of interest is 1.479%.
Step-by-step explanation:
Given,
Principle (P) = $500
Interest (I) = $51.76
Time (T) = 7 years
To find out the rate of interest (R).
Formula
Simple interest (I) = [tex]\frac{PTR}{100}[/tex]
According to the problem,
[tex]\frac{PTR}{100}[/tex] = 51.76
or, R = [tex]\frac{51.76X100}{PT}[/tex]
or, R = [tex]\frac{51.76X100}{500X7}[/tex]
= 1.4788 = 1.479% (approx)
Answer:
1.5%
Step-by-step explanation:
Principal, P = $500
Simple interest S.I. = $51.76
Period, T = 7 years
Simple interest = P*R*T / 100
Let's make rate, R the subject of formula
R = 100 * S.I. / P * T
Slot in the respective values
R = 100 * 51.76 / 500 * 7
R = 1.5%
