Question

A $6000 investment earns $690 annual simple interest in one year. what is the annual interest rate?

Answer 1

I=prt
p=principal=investment
r=rate
t=time ini years
I=interet

690=6000r1
690=6000r
divide both sides by 6000
0.115=r
11.5% is the interest rate

Answer 2

the annual interest rate is 11.5%

Explanation:

Hello, I think I can help you with this

due to the fact that it is a simple interest , and the time is one year, we can deduce that the profit of $690 is a percentage of $ 6000, all we need to do is to find that percentage using a rule of three

Step 1

Let

100%=$6000

X? = $690

(100%/$6000)=(X/$690)

Isolating x

x=(100%*$690)/($6000)

x=11.5 %

Hence.

the annual interest rate is 11.5%

I hope it helps, Have a nice day