Question

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?

Answer 1

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