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QveST [7]
3 years ago
7

Determine the interest rate if $2300 invested at simple interest for 2 years earns $402.50 interest

Mathematics
1 answer:
Degger [83]3 years ago
6 0
We would need to use the simple interest formula given by:

I = Prn

In this case, I = $402.50
                    P = $2300
                    N = 2 years

Sub these values into the equation,

402.50 = 2300 x r x 2
402.50 = 4600r

Divide both sides by 4600 to get r,

r = 0.0875

Multiply 0.0875 by 100 to get the percentage rate,

0.0875 x 100 = 8.75%

Hope this helped!
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