A simple interest of 37,500.00 is earned on an amount of500,000.00 for 3 years. Find the rate of interest per annum
To find the rate of interest per annum, we can use the formula for simple interest:
Simple Interest = (Principal x Rate x Time) / 100
Given that the simple interest is $37,500.00, the principal is $500,000.00, and the time is 3 years, we can rearrange the formula to solve for the rate:
37,500 = (500,000 x Rate x 3) / 100
37,500 = 15,00,000 x Rate / 100
Multiplying both sides by 100:
3750000 = 1500000 x Rate
Dividing by 1500000:
Rate = 2.5%
Therefore, the rate of interest per annum is 2.5%.