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Chris invests $200 at a rate of x% per year simple interest. At the end of 15 years, the total interest received is $48. Find the value of x.

A. x = 2%
B. x = 3%
C. x = 4%
D. x = 5%

1 Answer

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Final answer:

To calculate the simple interest rate (x), the formula Interest = Principal × Rate × Time is used. Solving the equation with the given values results in an interest rate of 1.6%, which is not among the options provided. The closest option to this value is 2% (Option A), but without further information, this cannot be selected with certainty.

Step-by-step explanation:

The student is trying to find the value of x, the simple interest rate, given that Chris invested $200 and the total interest received after 15 years is $48. The formula to calculate simple interest is: Interest = Principal × Rate × Time. With the numbers from the problem, this becomes $48 = $200 × (x/100) × 15. Solving for x, we follow these steps:

  • $48 = $200 × (x/100) × 15
  • Divide both sides by $200 × 15 to isolate x: x/100 = $48 / ($200 × 15)
  • Multiply both sides by 100 to find x: x = ($48 / ($200 × 15)) × 100
  • Calculate x: x = (48 / 3000) × 100
  • x = 1.6%

However, since 1.6% is not one of the answer choices and it looks like there may be a rounding or typographical error in the proposed solutions, the closest percentage that a student is likely to choose based on the options given is 2% (Option A). Nonetheless, without additional context or clarification, we cannot definitively select one of the provided answer choices.

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