$5,000 was invested at a simple intrest rate. In 15 years, the account was worth 65 hundred dollars. What wss the intrest rate?​

Question

$5,000 was invested at a simple intrest rate. In 15 years, the account was worth 65 hundred dollars. What wss the intrest rate?​

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Allison 24 hours 2021-09-15T21:20:21+00:00 1 Answer 0

Answers ( )

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    2021-09-15T21:21:44+00:00

    Answer:

    The interest rate was 2%

    Step-by-step explanation:

    we know that

    The simple interest formula is equal to

    A=P(1+rt)

    where

    A is the Final Investment Value

    P is the Principal amount of money to be invested

    r is the rate of interest  

    t is Number of Time Periods

    in this problem we have

    65 hundred dollars=$6,500

    so

    t=15\ years\\ P=\$5,000\\ A=\$6,500\\r=?

    substitute in the formula above

    6,500=5,000(1+15r)

    solve for r

    \frac{6,500}{5,000}=(1+15r)

    1.3=(1+15r)

    15r=1.3-1

    15r=0.3

    r=0.02

    Convert to percentage

    r=0.02*100=2\%

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