Answer:
His rate of interest(R) = 3.2%.
Explanation:
As per the given condition we have,
Interest withdrew(I)=$ 550 , Time(T)= 5 years , and the sum invested (P) = $3,437.50.
Use formula:
[tex]I=\frac{P \times R \times T}{100}[/tex]
Substituting the above values to find the rate of interest (R);
[tex]550=\frac{3437.50 \times R \times 5}{100}[/tex] or
[tex]R=\frac{550 \times 100}{3437.50 \times 5}[/tex]
On simplify we get;
R =3.2%
therefore, his rate of interest(R) is, 3.2%.
