Question

1,100 invested for one year pays a return of 121$ what is the rate of return

Answer 1

Rate: 11%

Explanation:

Interest formula.

Interest = Principal * Rate * Time

121 = 1100 * r * 1

Simplify equation to equal 121/1100 = r

There the rate is equal to 121 divided by 1100 which is 0.11.

To get the percent multiply my 100.

There the rate is 11%.

Proof:

1100 * 11 percent is equal to $121.