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MissTica
2 years ago
7

Elsa invested $500 in a fund for 4 years and was paid simple interest. The total interest that she received on the investment wa

s $80. As a percentage, what was the annual interest rate of her investment?
Mathematics
1 answer:
dezoksy [38]2 years ago
8 0

The annual interest rate of her investment would be = 4%

<h3>Calculation of annual interest rate</h3>

The principal amount invested= $500

The period of investment= 4years

The interest received= $80

The interest rate= ?

To calculate the interest rate use the formula,

SI = P×T×R/100

80 = 500 × 4 ×R/100

Make R the subject of formula,

R= 80 ×100/500×4

R= 8000/2000

R= 4%

Therefore, the annual interest rate of her investment would be = 4%.

Learn more about simple interest here:

brainly.com/question/20690803

#SPJ1

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