Question

George Inkling withdrew $550 simple interest from an account after 5 years. If he invested $3,437.50, how much was his rate of interest?

Answer 1

His rate of interest(R) = 3.2%.

Step-by-step explanation:

As per the given condition we have,

Interest withdrew(I)=$ 550 , Time(T)= 5 years , and the sum invested (P) = $3,437.50.

Use formula:

`I=(P * R * T)/(100)`

Substituting the above values to find the rate of interest (R);

`550=(3437.50 * R * 5)/(100)` or

`R=(550 * 100)/(3437.50 * 5)`

On simplify we get;

R =3.2%

therefore, his rate of interest(R) is, 3.2%.