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Answer:
R = 1.2%
Step-by-step explanation:
Given the following data;
Principal = 425
Time = 2
Simple interest = 10.20
To find the annual interest rate;
Mathematically, simple interest is calculated using this formula;
[tex] S.I = \frac {PRT}{100} [/tex]
Where;
Substituting into the equation, we have;
[tex] 10.20 = \frac {425*R*2}{100} [/tex]
[tex] 10.20 = \frac {850R}{100} [/tex]
Cross-multiplying, we have;
[tex] 1020 = 850R [/tex]
[tex] R = \frac {1020}{850} [/tex]
R = 1.2%
Therefore, the annual interest rate is 1.2 percent.