Question

A retired couple invested $6000 in bonds. At the end of one year, they received an interest payment of $396. What was the simple interest rate of the bonds?


           
Do NOT round off a decimal answer. 


Do NOT include a   symbol with your answer.

Answer 1

Answer: Simple interest Rate = 6.6%

Explanation:

Simple Interest = PRT/100

P = $6000

T=1

R= ?

Simple Interest = 396

From Simple Interest = PRT/100

396 = (6000 x R x 1)/100

396 = 6000R/100

39600 = 6000R

R = 39600/6000

R = 6.6%

Simple interest Rate = 6.6%

Answer 2

That is an interest rate of 6.6%