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ASHA 777 [7]
3 years ago
15

For her college fund jenny's parents invested $5000 four years ago. the account has now reached $6312. what is the approximate a

nnual return rate (r) on this investment.​
Mathematics
1 answer:
Tasya [4]3 years ago
4 0

Answer:

Rate = 6.56%

Step-by-step explanation:

Principal (P) = $5000

Interest (I) = $6312

Time (T) = 4 years

Rate (r) = ?

This question is involves simple interest and with the formula, we can easily plug in the values to find the rate.

S.I = P(1 + rt)

S.I = simple interest

P = principal

R = Rate

T = Time

6312 = 5000(1 + r*4)

6312 = 5000 + 5000*4r

6312 - 5000 = 20000r

1312 = 20000r

r = 1312 / 20000

r = 0.0656

Rate are calculated in percentage hence we'll multiply it by 100

R = 6.56%

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