The abc building society opened an account with a balance of 215 at the beginning of the year and closed it at the end of the second year with a balance of R320. Calculate the simple interest rate.
To calculate the simple interest rate, we need to know the amount of interest earned over the two years.
Interest = final balance - initial balance
Interest = 320 - 215
Interest = 105
Now we can use the formula:
Simple interest rate = (interest / initial balance) x 100
Simple interest rate = (105 / 215) x 100
Simple interest rate = 48.84%
Therefore, the simple interest rate for this account over two years is 48.84%.