Answer:
The annual interest rate is 12.05%.
Step-by-step explanation:
The simple interest is given by the formula:
[tex]I=\dfrac{P\times R\times T}{100}[/tex]
Where I denotes interest.
P denotes the principal amount.
R denotes the rate of interest
and T denotes the time period.
I=$160.67, P=$2000, t=8 months=8/12 years (Since 12 months=1 year so 1 month=1/12 year)
[tex]160.67=\dfrac{2000\times R \times \dfrac{8}{12}}{100}\\\\R=12.05%[/tex]
Hence, the annual interest rate is 12.05%.
