A sum of $46875 was lent out at simple interest and at the end of 1 yr 8 month, the total amount was $50000. Find the rate interest per year.

4%

Step-by-step explanation:

As indicated in the question, this is a simple interest question.

The formula for Simple Interest =

I = Principal × Rate × Time

In the above question, we were given the following values.

A = Total value / amount of money = $50000

Principal = $46875

Rate = ??

Time = 1 yr and 8 months

= 1 year +(8/12)

Time = 1.6666666667 years

We are asked to solve for the rate interest per year. Hence, the formula to use to solve this question is given as:

r = (1/t)(A/P - 1)

r = (1/1.6666666667)(50000/46875 - 1)

r = 0.04

Converting to percentage, rate = 0.04 × 100 = 4%

Therefore, the rate interest per year is 4%