Question

Principal of $600 is invested at 3.6% /a simple interest, paid annually, for 12 years. What is the rate of return?

A) 43.2% B) 21.6% C. 7.2% D) 0.6%

Answer 1

S.I. = P * R * T
= 600 * 0.036 * 12
= 259.2

Rate of interest = (S.I/P)*100
= (259.2/600)*100
= 43.2%