Answer: 1.2%
Explanation:
Given
If one borrows $12,250
and give $147 interest on it
Then the interest is given from the formula
[tex]\Rightarrow S.I=\dfrac{P\times R\times T}{100}\\\\\Rightarrow 147=\dfrac{12,250\times R\times 1}{100}\\\\\Rightarrow R=\dfrac{147}{122.50}\\\\\Rightarrow R=1.2\%[/tex]
Thus, the annual rate of interest is 1.2%
