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A $5,000 investment earns $550 annual simple interest in one year what is the annual intrest rate

User Melle
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1 Answer

6 votes
hey Dear
let's solve your problem
Principal Amount = 5000
Simple Interest = 550
Time Period = 1 Year

As we know
Simple Interest = Principal × Time × Rate (in %)
550 = 5000 × 1× Rate
550 /5000 ×100 = Rate
.11×100 = Rate
11 = Rate

hence, The rate of interest is 11% Per annum



happy to help ^_^
User Gabriel Mongeon
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