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An amount of PHP 3,000 is borrowed for 2 years. At the end of the two years, PHP 3,720 is paid back. What was the simple interest rate?

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Solution

implicit derivative amountofPHP3,000isborrowedfor2years.Attheendofthetwoyears,PHP3,720ispaidback.Whatwasthesimpleinterestrate?

Solution

Rate:12%
Solution steps
Translate the problem into an equation:3720=3000(1+r⋅2)
Solve for r,3720=3000(1+r⋅2):r=12%
Rate:12%

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