Answer: 7.5%
Step-by-step explanation:
Given: Principal amount = $15,000
Time =- 2 years
Final Amount (Principal + interest)= $17,250
Interest = Final Amount - Principal amount
= $ ( 17250 - 15000 )
= $ 2250
Formula for interest : principal x rate x time
[tex]2250=15000\times rate \times 2\\\\\Rightarrow\ rate =\dfrac{2250}{15000\times2}\\\\\Rightarrow\ rate =0.075\\\\\Rightarrow\ rate =0.075\times100\%=7.5\%[/tex]
Hence, the simplest interest rate on lukes loan =7.5%
