If the simple interest on $2000 for 2 years is $320, then what is the interest rate?

It would be 20,because you have to divide 320 by 2 which equals $160 for 1 year and then divide that by 2 again would be $80 for 6 months then divide it by 2 again which would be $40 and 3 months for it then divide it by 2 again and 1 and a half months equal $20

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Alleei Alleei · Answer 2 · 2020-01-08T13:03:30+01:00

Answer : The interest rate is, 8 %

Step-by-step explanation :

Given:

Principle = $2000

Simple interest (S.I) = $320

Time = 2 years

Now we have to determine the interest rate.

Formula used :

[tex]S.I=\frac{PRT}{100}[/tex]

where,

P = principle

R = interest rate

T = time

S.I = simple interest

Now put all the given values in the above formula, we get:

[tex]\$320=\frac{(\$2000)\times R\times (2)}{100}[/tex]

[tex]R=\frac{\$320\times 100}{(\$2000)\times (2)}[/tex]

[tex]R=8\%[/tex]

Thus, the interest rate is, 8 %