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If the simple interest on ​$1,000 for 5 years is ​$300​, then what is the interest​ rate?

User NsL
by
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1 Answer

9 votes

Answer:

6%/year

Explanation:

Solving our equation

r = 300 / ( 1000 × 5 ) = 0.06

r = 0.06

converting r decimal to a percentage

R = 0.06 * 100 = 6%/year

The interest rate required to

accumulate simple interest of $ 300.00

from a principal of $ 1,000.00

over 5 years is 6% per year.

User Byamabe
by
3.4k points