Question

Find the interest rate if $11200 has

a future value of $14345 in 3 years.
Give your answer to 1 d.p.

Answer 1

9.3%

Explanation:

Given data

Principal=$11200

Futute value= $14345

Time= 3years

The simple interest expression is given as

A=P(1+rt)

substitute

14345=11200 (1+r*3)

14345=11200+r33600

14345-11200=r33600

3145=r33600

r= 3145/33600

r=0.093

Hence the rate is 9.3%