Question

At what rate was an investment made that obtains $60.00 on $500 over two years?

A. 5%
B. 10%
C. 15%
D. 20%

Answer 1

The rate at which the investment was made is 6%.

Step-by-step explanation:

To find the rate at which the investment was made, we need to divide the amount earned ($60) by the initial investment ($500) and then divide by the number of years (2).

Therefore, the rate is $60/$500/2 = 0.06 = 6%.

So, the correct answer is A. 5%.