Question

George invested N$ 12550 for 5 years. After 5 years, he received a total amount of N$ 22500 from his investment. Calculate the annual rate at which interest was paid?

Answer 1

Interest =22500-12550 = 9950

N=5, p = 12550,

R = 100xI/PN=loox9950 /i2550x5

= 15.85% Ans

Answer 2

Answer:

The interest for the given annual rate is 15.85%.

Given:

George invested N$ 12550 for 5 years. After 5 years, he received a total amount of N$ 22500 from his investment.  

To find:  

The annual rate at which interest was paid

Solution:

Principal = 12550, interest + principal = 22500

Interest gained = 22500 – 12550 = 9950

No of years = 5

Simple interest = $\frac{P \times n \times r}{100}$

9950 =$\frac{12550 \times 5 \times r}{100}$

By simplifying, we get r = 15.85%

Result:

The interest for the given annual rate is 15.85%.