Answer:
6%
Step-by-step explanation:
To solve this problem we can use a modified version of the simple interest formula which is shown below:
[tex]r=\frac{I}{Pt}[/tex]
I = interest amount
P = principal amount
t = time (years)
Lets plug in the values:
[tex]r=\frac{120}{(1,000)(2)}[/tex]
[tex]r=.06[/tex]
The last step is to convert 0.06 into a percent:
0.06(100) = 6
The interest rate is 6%.
