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

Question

2 years ago

7

s $80. As a percentage, what was the annual interest rate of her investment?

1 answer:

dezoksy [38] · Answer 1 · 2023-04-11T13:37:07+03:00

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%.

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