Question

What annual rate of interest would you have to earn on an investment of $3500 to ensure receiving $273.00 interest after 1 year?

Answer 1

To find the answer, we will have to find the percentage of $273 to $ 3500, and we can use the formula:

$\frac{interest received}{investment amount} \times 100%$

In this case:

273/3500 x 100%

=39/500 x 100%

=7.8%

Therefore the annual interest rate would be 7.8%.

Hope it helps!