Alice earned interest of $120 from an investment of $1000 for two years. what is the rate of simple interest per year?

The rate of interest was 6%.

Step-by-step explanation:

Alice earned interest of $120 from an investment of $1000 for two years.

Simple interest formula is :

I = p x r x t

We have I = 120

p = 1000

t = 2

r = ?

Substituting the values in formula, we get;

=>

r = 0.06

And in percentage, it is = 6%

Hence, The rate of interest was 6%.