Question

At what rate of simple interest would it take 3.57 years for an

investment of $3069.75 to grow to 3199.17? Give your answer as a
percentage rounded to 2 decimal places.

Answer 1

The annual simple interest rate needed for an investment of $3069.75 to grow to $3199.17 in 3.57 years is 1.20%, after rounding to two decimal places.

Step-by-step explanation:

To find the rate of simple interest for an investment of $3069.75 to grow to $3199.17 in 3.57 years, you can use the formula for simple interest:

I = P * r * t

Where I is the interest earned ($129.42), P is the principal amount ($3069.75), r is the interest rate (which we are trying to find), and t is the time period in years (3.57).

First, we calculate the interest earned (I) by subtracting the principal (P) from the final amount:

I = $3199.17 - $3069.75 = $129.42

Now, we can rearrange the formula to solve for r:

r = I / (P * t)

r = $129.42 / ($3069.75 * 3.57)

r = 0.012 or 1.20%

Therefore, the annual simple interest rate rounded to two decimal places is 1.20%.