Question

you earn $11.25 each on an investment. what is the rate of simple interest if you initial amount invested was $750

Answer 1

1.5% . . . in the applicable time period

Explanation:

I = Prt . . . . . here, no time period is given, so we assume it is 1 year.

11.25 = 750·r·1

Dividing by the coefficient of r, we find

11.25/750 = r = 0.015 = 1.5%