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Readme [11.4K]
3 years ago
8

Mariska was comparing her options for investment. One choice she was looking at showed that her principal of $1,875 over 10 year

s would earn $1,125 in interest giving her a total of $3,000 at the end of the investment period. What interest rate is being used to calculate this investment?
Mathematics
1 answer:
RideAnS [48]3 years ago
8 0

Answer: 6%

Step-by-step explanation:

Principal= $1875

Time= 10 years

Interest= $1125

Rate = Unknown

Recall that,

Interest= (Principal×Rate×Time)/100

I = PRT/100

100I = PRT

R= (100×I)/PT

Rate = (100 × 1125)/(1875 × 10)

Rate = 112500/18750

Rate= 6%

The rate is 6%

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