A deposit of $6,500 was invested and has grown to $8,300 in 5 years. The growth in value was via simple annual interest, calculated on the basis of the initial investment. Calculate the interest rate.
Answers
Answered by
48
Formula used-
Solution-
∴A deposit of 6500 was invested and expanded to 8300 , this means the simple interest is
= 8300 - 6500
= $ 1800
∴ Principal = $6500
∴No. of years = 5 years
∴Simple interest = $1800
ANS- Rate of interest = 5.5%
____________________________________
Answered by
26
Given :
- Invested deposit = $6500
- Grown deposit = $8300
- Time = 5years
- Growth in value was via Simple Interest (SI)
To find :
- Interest rate (r)
Solution :
Formula used :
- Simple interest = Grown deposit-Invested deposit
Simple interest = $8300-$6500
Simple interest = $1800
- Principal value = Invested deposit
Principal value = $6500
- Time = 5
Rate of interest is 5.5%
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