Question

At what rate (%) of simple intrest will $5,000 amount to $6,050 in 3 years?

Answer 1

Rate of interest for

A = $5000

THEN apply formula

A-P= P•R•T/100

T = 3 years

Then

6050 - 5000= 1050 =

1050= P•R•T/100

Now find R

R= (1050•100)/(P•T) = (105000)/(5000•3) = 7

Then ANSWER IS

ANUAL RATE(%) = 7%