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frosja888 [35]
3 years ago
11

After 5 years, a $2,450 investment is worth $3,123.75 What is the simple annual interest rate for this investment?

Mathematics
2 answers:
serg [7]3 years ago
5 0

Answer:5.5

Step-by-step explanation:

Given

Principal (P)=2450

After 5 years its worth is 3123.75

So its simple interest is 3123.75-2450=673.75

And Simple interest is given by=\frac{PRT}{100}

Where R=rate of interest

T=time period

673.75=\frac{\left ( 2450\right )\left ( R\right )\left ( 5\right )}{100}

R=5.5 %

enot [183]3 years ago
4 0
Simple interest is just i=prt, where i=interest, p=principle, r=rate, t=time

And that simple interest will be the difference between the final value and the initial value so:

3123.75-2450=2450r*5

673.75=12250r

0.055=r

So the annual simple interest rate (as a percentage) is 100(.055)=5.5%
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