Question 1099097
$75 interest divided by 2 years is $37.5 interest charged per year.


37.5 / 1500 = .025.


she was charged 2.5% interest per year.


simple interest formula is i = p * r * n


i is the interest.
p is the principal
r is the interest rate per time period
n is the number of time periods.


in her case, this formula becomes 75 = 1500 * r * 2.


solve for r to get r = 75 / 1500 / 2 = .025 = 2.5%.