To find:
The rate of interest.
Solution:
It is known that the rate of interest is given by:
[tex]r=n[(\frac{A}{P})^{\frac{1}{nt}}-1][/tex]
Here. P = 60000, A = 61200, t = 2.5 and n = 12.
[tex]\begin{gathered} r=12[(\frac{61200}{60000})^{\frac{1}{12(2.5)}}-1] \\ r=0.00792366 \end{gathered}[/tex]
Change into the percentage by multiplying by 100:
[tex]\begin{gathered} r=0.00792366 \\ r=0.79\% \end{gathered}[/tex]
Thus, the answer is 0.79% per year.
