Sure, let's solve the problem step by step.
Problem Statement:
We need to find the rate at which an interest of \[tex]$72 is earned in 3 years with a principal amount of \$[/tex]100.
Given:
- Interest (I) = \[tex]$72
- Principal (P) = \$[/tex]100
- Time (T) = 3 years
Formula for Simple Interest:
[tex]\[ \text{Simple Interest} = \frac{P \times R \times T}{100} \][/tex]
Rearranging the formula to solve for the rate (R), we have:
[tex]\[ R = \frac{I \times 100}{P \times T} \][/tex]
Step 1: Substitute the given values into the formula.
[tex]\[ R = \frac{72 \times 100}{100 \times 3} \][/tex]
Step 2: Simplify the expression.
[tex]\[ R = \frac{7200}{300} \][/tex]
Step 3: Perform the division.
[tex]\[ R = 24 \% \][/tex]
Therefore, the interest will be earned at a rate of 24% per year.
