An investment of $5000 earns $6000 simple interest in 12 years. Calculate the interest rate.
1 answer:
Answer:
10%
Step-by-step explanation:
To solve this problem we can use a modified version of the simple interest formula which is shown below:
<em>I = interest amount </em>
<em>P = principal amount </em>
<em>t = time (years) </em>
Lets plug in the values:
The last step is to convert 0.1 into a percent:
0.1(100) = 10
The interest rate is 10%
You might be interested in
Answer:
9.9%
Step-by-step explanation:
Well, you would just divide the "other" category and the "total" category and then move the decimal over 2 spaces, because you need to multiply by 100 to turn your answer into a percent, so:
Then once you multiply by 100, or move the decimal to the left 2 spaces, it becomes:
9.9%, which could be rounded to 10% or 9%.