Answer
7.5%
Work Step by Step
Calculation of interest can be done with the mentioned formula:
\[\text{Interest rate}=\frac{A-P}{Pt}\]
Where A denotes the Future value of the amount, P denotes the Principal amount, r denotes the rate of interest, and t denotes the number of years.
Compute the interest rate by substituting the values in the formula as mentioned below:
\[\begin{align}
& r=\frac{A-P}{Pt} \\
& =\frac{\$5,750-\$5,000}{\$5,000\times2}\\&=\frac{\$750}{\$10,000}\\&=7.5percent\end{align}\]
Hence, the interest rate is 7.5%
