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spin [16.1K]
3 years ago
8

If a Canada savings Bond is worth $6225 after 7 years, and was originally bought for $5000, what was the annual simple interest

rate? Answer as a percentage.
[Formulas are,
[I = P, R, T]
[A = P + I]
[A = P(1 + R times T)
Mathematics
1 answer:
Ede4ka [16]3 years ago
7 0

Answer:

3.5%

Step-by-step explanation:

Given data

A=$6225

P=$5000

T= 7years

R=???

Simple interest

A=P(1+rt)

substitute

6225=5000(1+7r)

6225=5000+35000r

collect like terms

6225-5000=35000r

1225=35000r

r= 1225/35000

r=0.035

Hence the rate is 0.035*100= 3.5%

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