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strojnjashka [21]
3 years ago
6

A deposit of $6,500 was invested and has grown to $8,300 in 5 years. The growth in value was via simple interest, calculated on

the basis of the initial investment. Calculate the rate of interest. Give your answer as a percentage to the nearest tenth of a percent.
Mathematics
1 answer:
bagirrra123 [75]3 years ago
5 0

Answer: 5.5%

Step-by-step explanation:

Since the money invested has grown to $8300 and the principal was $600, this means the interest is:

= $8300 - $6500

= $1800

Simple interest = (Principal × Rate × Time)/100

1800 = (6500 × Rate × 5)/100

Cross multiply

1800 × 100 = 32500 × Rate

Rate = 180000/32500

Rate = 5.5%

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