Problema Solution

A certificate of deposit pays $2493.75 in simple interest for 1 yr on a principal on $37,500. What is the rate of interest?

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A certificate of deposit pays $2493.75 in simple interest for 1 yr on a principal on $37,500. What is the rate of interest?

Rate of interest= (Interest*100)/(principal amount*time)

Rate of interest= (2493.75*100)/(37500*1)=6.65