Question

At what rate of simple interest will $2800 amount to $3500 in 2 years 3 months

Answer 1

Answer:

11.11% (nearest hundredth)

Step-by-step explanation:

Simple interest formula

A = P(1 + rt)

where:

• A = final amount
• P = principal
• r = interest rate (in decimal form)
• t = time (in years)

Given:

• A = $3500
• P = $2800
• t = 2 years 3 months = 2.25 years

Substitute given values into the formula and solve for r:

⇒ 3500 = 2800(1 + 2.25r)

⇒ 3500 = 2800 + 6300r

⇒ 700 = 6300r

⇒ r = 1/9

Convert the interest rate into a percentage:

⇒ r × 100% = 1/9 × 100% = 11.11% (nearest hundredth)