Question

What simple interest rate would allow $6000 to grow to an amount of $14550 in 10 years?

Answer 1

Answer:

$\boxed{ \bold{ \huge{ \boxed{ \sf{ \: 14.25 \: \% \: }}}}}$

Step-by-step explanation:

Given,

Principal ( P ) = $ 6000

Amount ( A ) = $ 14550

Time ( T ) = 10 years

Rate ( R ) = ?

Finding the Interest

The sum of principal and interest is called an amount.

From the definition,

$\boxed{ \sf{Amount = \: Principal + Interest}}$

plug the values

⇒$\sf{14550 = 6000 + Interest}$

Swap the sides of the equation

⇒$\sf{6000 + Interest = 14550}$

Move 6000 to right hand side and change its sign

⇒$\sf{Interest = 14550 - 6000}$

Subtract 6000 from 14550

⇒$\sf{Interest = \: 8550 \: }$

Interest = $ 8550

Finding the rate

${ \boxed{ \sf{Rate = \frac{Interest \times 100}{Principal \times Time}}}}$

plug the values

⇒$\sf{ Rate = \frac{8550 \times 100}{6000 \times 10} }$

Calculate

⇒$\sf{Rate = \frac{855000}{60000} }$

⇒$\sf{Rate = 14.25 \: \% \: }$

Hope I helped!

Best regards!!