Li deposited $17,500 into a bank account that earned simple interest each year. after 2 years, he had earned $2975 in interest.

if no money was deposited into or withdrawn from the account, what was the annual interest rate?

Answer : The annual interest rate was, 8.5 %

Step-by-step explanation :

Given:

Principle = $17,500

Simple interest (S.I) = $2975

Time = 2 years

Now we have to determine the interest rate.

Formula used :

where,

P = principle  

R = interest rate

T = time

S.I = simple interest

Now put all the given values in the above formula, we get:

Thus, the annual interest rate was, 8.5 %