Find the rate of simple interest for the principal of $625 after 2, years, when the interest is $5000.

To find the rate of simple interest, we can use the formula for simple interest:

\[ I = P \times r \times t \]

where:
- $ I $ is the interest,
- $ P $ is the principal,
- $ r $ is the rate of interest,
- $ t $ is the time.

We need to solve for $ r $, the rate of interest.

Given:
\[ I = 5000 \]
\[ P = 625 \]
\[ t = 2 \]

Substitute the given values into the formula:

\[ 5000 = 625 \times r \times 2 \]

Simplify the equation:

\[ 5000 = 1250r \]

Solve for $ r $:

\[ r = \frac{5000}{1250} \]

\[ r = 4 \]

Therefore, the rate of simple interest is $ 4 $ or $ 400\% $.

Would you like more details or have any questions?

Here are 5 questions you might want to ask:
1. How is simple interest different from compound interest?
2. Can you show an example of compound interest calculation?
3. What is the formula for calculating compound interest?
4. How do I convert an annual interest rate to a monthly rate?
5. How can I calculate the future value of an investment with simple interest?

**Tip:** When solving for a variable in an equation, always isolate the variable on one side of the equation to find its value.

Learn how to calculate the rate of simple interest for a principal of $625 after 2 years with a step-by-step solution. This problem uses the simple interest formula I = P * r * t, where I is the interest, P is the principal, r is the rate of interest, and t is the time.

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