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dsp73
3 years ago
12

At what simple annual interest rate must $2,500 be invested if it is to earn $225 in interest in one year?

Mathematics
1 answer:
Leya [2.2K]3 years ago
8 0

Answer:

D) 9%

Step-by-step explanation:

Simple interest formula:

I = P*r*t

  • Principal (P) -> $2,500
  • interest rate (r) -> r
  • time (t) -> 1 year

Thus:

225 = 2,500*r*1

After clearing the equation:

r = \frac{9}{100}, which is 0.09 -> 9%

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