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If the simple interest on ​$7000 for 4 years is ​$1400 ​, then what is the interest​ rate?

User LampShaded
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1 Answer

5 votes

Answer: 0.05% per year

Explanation:

7000 × 0.2 = 1400 = 0.2% interest every 4 years.

0.2 × 0.5 = 0.1 = 0.1% interest every 2 years.

0.1 × 0.5 = 0.05 = 0.05% interest every year.

Now, to prove this we will multiply 0.2 × 0.25, since the half of 0.5 is 0.25:

0.2 × 0.25 = 0.05

Therefore, the answer would be:

0.2% interest every 4 years.

0.1% interest every 2 years.

0.05% interest every year.

Happy to help!

User Gabriellanata
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