Answer : The interest rate was, 3 %
Step-by-step explanation :
Given:
Principle = $800
Simple interest (S.I) = $120
Time = 5 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]\$120=\frac{(\$800)\times R\times (5)}{100}[/tex]
[tex]R=\frac{\$120\times 100}{(\$800)\times (5)}[/tex]
[tex]R=3\%[/tex]
Thus, the interest rate was, 3 %
