if the simple interest on $2000 for 8 years is $960, then what is the interest rate?
I = PRT
960 = 2000 * R * 8
960 = 16000R
960 / 16,000 = R
0.06 = 6% = R
2000(8r) = 960
r = 6.0%
That's $120/year * 8 years = $960
To find the interest rate, we can use the formula for simple interest:
Simple Interest = (Principal * Interest Rate * Time)
Given that the principal amount is $2000, the time is 8 years, and the simple interest is $960, we can substitute these values into the formula:
$960 = ($2000 * Interest Rate * 8)
To find the interest rate, we can rearrange the formula and solve for it:
Interest Rate = $960 / ($2000 * 8)
Interest Rate = $960 / $16000
Interest Rate = 0.06 or 6%
Therefore, the interest rate is 6%.
To find the interest rate, we can use the formula for simple interest:
Simple Interest = (Principal * Interest Rate * Time) / 100
In this case, we know the principal (P) is $2000, the time (T) is 8 years, and the simple interest (I) is $960.
So we can rearrange the formula to solve for the interest rate (R):
Interest Rate = (Simple Interest * 100) / (Principal * Time)
Substituting the given values into the formula, we have:
Interest Rate = ($960 * 100) / ($2000 * 8)
Interest Rate = 96000 / 16000
Simplifying further, we have:
Interest Rate = 6%
Therefore, the interest rate is 6%.