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A $6000 investment earns $690 simple interest in two years. What is the annual interest rate? A. 1.15% B. 5.75% C. 11.5% D. 57.5%
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5 votes
A $6000 investment earns $690 simple interest in two years. What is the annual interest rate?

A.
1.15%
B.
5.75%
C.
11.5%
D.
57.5%

User Laura
by
8.1k points

1 Answer

4 votes
2 years simple interest is $690
1 year simple interest is $690/2 = $345

$6000 simple interest is $345
$1000 simple interest is $345/6 = $57.5
$100 simple interest is $57.5/10 = $5.75

Annual interest rate is 5.75%
User Porculus
by
7.5k points
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