Answer:
5.9%
Step-by-step explanation:
Assuming simple interest compounded annually,
Final Amount = Initial amount [ 1 + (interest rate)(number of years) ]
or mathematically
A = P (1 + rt)
in our case, we are given
A = Initial Amount + Interest = $23,000 + $13,570 = $36,570
P = $23,000
t = 10 years
Substituting this into the equation for simple interest,
36,570 = 23,000 (1 + 10r) (divide both sides by 23,000 and rearrange)
(1 + 10r) = 36,570 / 23,000
(1 + 10r) = 1.59 (subtract 1 from bot sides)
10r = 1.59 - 1
10r = 0.59 (divide both sides by 10)
r = 0.59 / 10
r = 0.059
hence the interest rate expressed as percentage is,
0.059 x 100% = 5.9%
