Question

At what rate would you earn $150 in interest on $5,000 for one year?

Answer 1

Rate of interest should be `3%`

Explanation:

Let `R` be the rate , `I` be the interest, `P` be the principal , `T` be the time in year.
Here `I=150; P=5000 ; T=1 ; R=?`

We know `I=(P*R*T)/100 or R=(I*100)/(P*T) ; R= (150*100)/(5000*1)=3%`[Ans]