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15 votes
After 7 years, an initial investment of $600 earned $84. Find the interest rate

User Soarabh
by
6.2k points

2 Answers

5 votes

Final answer:

To find the interest rate, divide the interest earned by the principal multiplied by the time. In this case, the interest rate is approximately 2%.

Step-by-step explanation:

To find the interest rate, we can use the formula for simple interest: Interest = Principal x Rate x Time.

Given that the initial investment is $600 and it earned $84 after 7 years, we can set up the equation as follows:

84 = 600 x Rate x 7

To isolate the rate, divide both sides of the equation by (600 x 7):

Rate = 84 / (600 x 7)

Simplifying, we find that Rate is approximately 0.02 or 2%.

User Sumit Arora
by
7.5k points
10 votes

Answer:

2%

Step-by-step explanation:

Solving our equation

r = 84 / ( 600 Ă— 7 ) = 0.02

r = 0.02

converting r decimal to a percentage

R = 0.02 * 100 = 2%/year

The interest rate required to

accumulate simple interest of $ 84.00

from a principal of $ 600.00

over 7 years is 2% per year.

User LuRsT
by
6.8k points
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