Answer :
The simple interest earned is $200 and the annual rate is 4 % paid by the bank.
As per the question, the given data as:
P = $2500
A = $2700
T = two years
simple interest = A - P
simple interest = $2700 - $2500
simple interest = $200
⇒ Simple interest = P × R × T
Substitute the value of P and T in the above formula, and solve for R
⇒ 200 = 2500 × R × 2
⇒ 200 = 5000R
⇒ R = 200/5000
⇒ R = 0.04
⇒ R = 4/100
⇒ R = 4 %
Thus, the simple interest earned is $200 and the annual rate is 4 % paid by the bank.
Learn more about the simple interest here:
brainly.com/question/22621039
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