Question

A sum of $9, 000 paid into a bank account for two months (61 days) to attract simple interest will produce $9, 020 at the and of the term. Find the interest rate r and the return on this investment

Answer 1

Answer:

Rate of interest will be 1.33 %

Return on this investment = $=\frac{9020-9000}{9000}=0.222$ %

Step-by-step explanation:

We have given principle amount P = $9000

Time = 61 days = $\frac{61}{365}=0.167\ years$

We have to find the rate of interest

Total amount produce at the end of term = $9020

So interest = $9020 - $9000 = $20

We know that simple interest $=\frac{principle\ amount\times rate\times\ time}{100}$

$20=\frac{9000\times rate\times\\ 0.167}{100}$

$rate=1.33$ %

Return on this investment = $=\frac{9020-9000}{9000}=0.222$ %