Question

. A deposit of 7,500 earns 3,900 over a period of 8 years. What is thw simple interest rate?

Answer 1

I = PRT

3900 = 7500 * R * 8

Answer 2

simple interest is the same every year so
interest = 3900/8 = 487.50 per year

(487.50/7500) 100

= 6.5 %