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A retired couple invested $10000 in bonds. At the end of one year, they received an interest payment of $690. What was the simple interest rate of the bonds?

User Dpigera
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1 Answer

3 votes

Answer:

Rate of interest = 6.9 %

Explanation:

Given in question as,

principal invested = $10000

Interest credited = $ 690

Time taken for the Principal amount = 1 year

Now the interest is applies on simple interest

SO, simple interest =
(Principal times Rate times Time)/(100)

Or, SI =
(PRT)/(100)

Or, 690 =
(10000 times 1 times Rate)/(100)

∴ Rate =
(69000)/(10000)

Hence Rate of interest= 6.9 % Answer

User Rrcal
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