221k views
3 votes
After 3 years a $1500 investment is worth $1680.

what is the interest rate on the investment?

User Mafro
by
6.7k points

1 Answer

6 votes
Answer:
the rate of interest on the investment comes out to be 4%.
Explanation:
time of investment = 3 years
initial investment(P) = $1,500
Final Amount = $1,680
interest rate of the investment =?
Amount=P+ PRT
1680 = 1500 +1500 × 3 × R
1680 - 1500 = 1500 × 3 × R
R = 180 / 4500
R= 0.04
R= 4%
hence, the rate of interest on the investment comes out to be 4%.
User MoonMist
by
6.3k points