Question

Mark invests $5,000 and earns $375 in simple interest over a 3 year period. What was the interest rate on the investment? answer is 2.5%

Answer 1

To find the interest rate for Mark's investment, we can use the formula:

Simple Interest = (Principal x Rate x Time)

where Principal is the amount invested, Rate is the interest rate, and Time is the duration of the investment.

We can plug in the given values to get:

375 = (5000 x Rate x 3)

Solving for Rate, we get:

Rate = 375 / (5000 x 3)
Rate = 0.025 or 2.5%

Therefore, the interest rate on Mark's investment was 2.5%
:)