134k views
3 votes
Find the interest rate, I, on a given security that costs $100 and that will return $150 after 10 years.

User OpenSauce
by
7.5k points

1 Answer

6 votes

Answer:

Rate = 6.666%

Step-by-step explanation:

First, the formula of the simple interest rate is:

R = I/PT x 100%

Put in the numbers:

R = $100/($150 x 10 years) x 100%

Then calculate:

R = $100/$1500 x 100%

R = 100/15%

R = 6.666%

User Delmo
by
8.0k points

No related questions found