Question

If 2500 amounted to 3500 in 4 years as simple interest .find the rates at wish the interest was charged

Answer 1

Answer:

The interest rate per year is 0.1

Step-by-step explanation:

The equation is A = P(1+rt)

Substitute the numbers

3500 = 2500 (1+4r)

solve for r:

$3500/2500 = 1+4r$

$1.4-1 = 4r$

$0.4 /4 = r$

$r = 0.1$