Question

He simple interest on an investment of $2000 for one year is $110.

What is the interest rate?



A.
0.0055%


B.
0.055%


C.
0.55%


D.
5.5%

Answer 1

Simple interest: I=Prt
110=2000(r)(1)
110=2000r
r= 0.055= 5.5%
D

Answer 2

You're looking to find how much of 2000 $110 is. What percent of 2000 is 110?

110 parts out of 2000 parts can also be written in a fraction:

`(110)/(2000)`
=
`(11)/(200)`
= 0.055

To get a percent from a decimal, you multiply by 100:
0.055 * 100 = 5.5%

So, $110 is 5.5% of the initial $2000. Hope this helps! :)