Question

If you wanted to make $1219 by investing $4206 of 10 years in an account that pays simple interest, what interest rate you would need to achieve your goal? rate(%):​

Answer 1

2.90 % rate

Explanation:

Simple intrest (si) = $1219

Principal (p) = $4206

time (t) = 10yrs

rate (r) = ?

Now using formula,

r = ix100/p×t

r = 1219×100/4206×10

r = 2.90 ( in calculator it will show 2.898 if the third digit is more than 5 after the decimal in the second number 1 is added so it will be 2.90)