Question

If the simple interest on ​$1000 for 5 years is ​$250, then what is the interest​ rate?

Answer 1

5%

Explanation:

Interest earned=

PV-PV(1+it)

we have

250=1000-1000(1+5i)

solve for i

-750= -5000i

250= -5000i

.05= i

Answer 2

Explanation:

i=prt

250=(1000)((5)

250= 5000 r

250/5000 = r

r=0.05 or 5% internet rate