Question

1. find the annual interest rate.

i = $24, p = $400, t = 2 years
=
the annual interest rate is ____ %

Explanation:

Step1: Recall simple interest formula

$I = P \times r \times t$

Step2: Rearrange for rate $r$

$r = \frac{I}{P \times t}$

Step3: Substitute given values

$r = \frac{24}{400 \times 2}$

Step4: Calculate and convert to percentage

$r = \frac{24}{800} = 0.03 = 3\%$

Answer:

3%