Answer:
4%
Step-by-step explanation:
You can use the formula below to find the simple interest rate.
Simple interest = P r t / 100
Here,
P ⇒ Principle ⇒ $ 5000
r ⇒ rate ⇒ ??
t ⇒ time ⇒ 6 years
simple interest ⇒ $ 1200
Let us find it now.
Simple interest = P r t / 100
1200 = 5000 × r × 6 / 100
1200 × 100 = 30000r
120000 = 30000 r
Divide both sides by r.
4 = r
Therefore, the interest rate is 4%
