Question

If 2500 amounted to 3500 in 4 years as simple interest .find the rates at wish the interest was charged

Answer 1

The interest rate per year is 0.1

Explanation:

The equation is A = P(1+rt)

Substitute the numbers

3500 = 2500 (1+4r)

solve for r:

`3500/2500 = 1+4r`

`1.4-1 = 4r`

`0.4 /4 = r`

`r = 0.1`