Question

After 3 years, a $1,500 investment is worth $1,680. What is the interest rate on the investment?

Answer 1

I=PRT

1680-1500 = 180 IS INTEREST

180=1500(3)R

180=4500R

DIVIDE BOTH SIDES BY 4500 TO FIND R

R=.04

R=4%

Answer 2

the rate of interest on the investment comes out to be 4%.

Explanation:

time of investment = 3 years

initial investment(P) = $1,500

Final Amount = $1,680

interest rate of the investment = ?

Amount = P + P R T

1680 = 1500 + 1500 × 3 × R

1680 - 1500 = 1500 × 3 × R

R = 180 / 4500

R = 0.04

R = 4%

hence, the rate of interest on the investment comes out to be 4%.