Question

A retired couple invested $10000 in bonds. At the end of one year, they received an interest payment of $690. What was the simple interest rate of the bonds?

Answer 1

Answer:

Rate of interest = 6.9 %

Step-by-step explanation:

Given in question as,

principal invested = $10000

Interest credited = $ 690

Time taken for the Principal amount = 1 year

Now the interest is applies on simple interest

SO, simple interest = $\frac{Principal times Rate times Time}{100}$

Or, SI = $\frac{PRT}{100}$

Or,  690 = $\frac{10000 times 1 times Rate}{100}$

∴ Rate = $\frac{69000}{10000}$

Hence Rate of interest= 6.9 %       Answer