Question

I invested $1585 for 5 years and
earned $475.50 in interest. What was
the interest rate?

Answer 1

6%

Explanation:

Given data

Principal= $1585

Time = 5 years

Interest = $475.50

Rate =???

The expression for the interest is given as

SI=PRT/100

substitute

475.50=1585*R*5/100

Cross multiply

475.50*100= 7925R

47550=7925R

R= 47550/7925

R= 6%

Hence the rate is 6%