Question 734173
Simple interest means that the investor earns the same % of the
principal each year. The principal is $6000.
So, for 1 year he earns interest = {{{ 6000r }}} where {{{ r }}} is the rate of interest.
You are given that he earned $270 in interest after 2 yrs
{{{ 270/2 = 135 }}} was earned in each of those 2 yrs.
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Let {{{ I }}} = interest earned in a year.
{{{ I = 6000r }}}
{{{ r = I / 6000 }}}
{{{ r = 135 / 6000 }}}
{{{ r = .0225 }}}
{{{ .0225*100 = 2.25 }}}
The simple interest rate was 2.25%