Question

Samm investment of %6500 grows to %9780 in 6 years.

At what rate of simple interest was the money invested? (round to 2d.p.)



CAN SOMEONE ANSWER THIS PLZ?

Answer 1

Answer: 8.41 percent

Explanation:

Simple Interest= PxRxT/100

Therefore, Rate = (100 × Interest)/(Principal × Time)

From the information given,

Principal is $6500

Time is 6 years

Interest is $3280; the difference between future value and current value

$9780 - $6500 = $3280

Plug in the values into the formula;

Rate = (100 × 3280)/(6500 × 6)

R= 328,000/39,000

R = 8.41

Thus rate is 8.41 percent.