Gary borrowed $1200 from a bank. He had to repay $2.20 as simple interest after 2 months. Determine the interest rate per annum.

Question

Gary borrowed $1200 from a bank. He had to repay $2.20 as simple interest after 2 months. Determine the interest rate per annum.
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Solution 1

To find the annual interest rate, we first need to understand the formula for simple interest, which is:

I = PRT

where: I = Interest P = Principal amount (the initial amount of money) R = Rate of interest T = Time period

In this case, we know: I = $2.20 P = $1200 T = 2/12 (since the time is given Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
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