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ser-zykov [4K]
3 years ago
12

Remi invests ?600 for 5 years in a saving account. By the end of the 5 years he has received a total of ?75 simple interest. Wor

k out the annual rate of simple interest
Mathematics
1 answer:
Allushta [10]3 years ago
4 0

Answer:

2.5 %  

Step-by-step explanation:

The simple interest formula is

I = Prt

Data:

I = $75

P = $600

t = 5 yr

Calculation:

75 = 600 × r × 5

75 = 3000 r

Divide each side by 3000

r = 75/3000 = 0.025 = 2.5 % APR

The annual percentage rate is 2.5 %.

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