Question

Salvador’s investment of $2,200 in the stock market earned $528 in two years. Find the simple interest rate for this investment.

Answer 1

24%

Explanation:

Step one:

given data

Principal= $2,200

SImple interest =$528

Time = 2years

Rate = ?

Required:

Rate R

The simple interest is expressed mathematically as

SI=PRT/100

substitute we have

528=2200*R*2/100

cross multiply

528*100=2200R

divide both sides by 2200

R=52800/2200

R=24%