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Studentka2010 [4]
3 years ago
11

What interest is needed to earn $137.50 on a deposit of $500 for five years if it earns simple interest?

Mathematics
1 answer:
sineoko [7]3 years ago
4 0

Answer:

5.5%

Step-by-step explanation:

Given data

Simple interest =  $137.50

Principal= $500

time = 5 years

We want to find the rate  R

Simple interest= PRT/100

137.50 = 500*R*5/100

137.50=2500R/100

cross multiply

137.5*100= 2500R

13750= 2500R

divide both sides by 2500

R= 13750/2500

R=5.5%

Hence the rate is 5.5%

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