Answer:
The rate of interest paid on the principal amount is 8%.
Step-by-step explanation:
Here, Principal Amount = $2,000
Time = 3 months = (3/ 12 ) Years = 0.25 years
Rate = R
Interest Amount = $40
Now, as we know :
Simple Interest = [tex]\frac{P \times R \times T}{100}[/tex]
⇒[tex]40 = \frac{2,000 \times R \times 0.25}{100}\\\implies R = \frac{40 \times 100}{2000 \times 0.25} =8[/tex]
or, R = 8%
Hence, the rate of interest paid is 8%.
