Answer: 4%
Step-by-step explanation:
The formula to calculate simple interest is given by :-
\(\text{I}=P\cdot r\cdot t\), where P is the Principal amount, r is the rate of interest in decimal and t is the time.
Given: I = $30
P = $250
T = 3 years
Substitute the given values in the above formula , we get
\(30=250\cdot r\cdot 3\\\Rightarrow\ r=\frac{30}{250\times3}\\\Rightarrow\ r=0.04\)
In percent, \(r=0.04\times100=4\%\)
Hence, the annual interest = 4%.
