asked 14.4k views
5 votes
What is the simple interest rate on a $2000 investment paying
$752.40 interest in 11.4 years?

asked
User WayneOS
by
7.9k points

1 Answer

2 votes

Final answer:

The simple interest rate on a $2000 investment paying $752.40 interest over 11.4 years is calculated as 3.3% per year, using the formula for simple interest.

Step-by-step explanation:

To calculate the simple interest rate, we use the formula Interest = Principal × Rate × Time, where the principal is the initial amount of money, the rate is the simple interest rate per year, and time is the number of years. From the question, we know that the Interest is $752.40, the Principal is $2000, and the Time is 11.4 years. Plugging these into the formula gives us $752.40 = $2000 × Rate × 11.4. To find the Rate, we rearrange the formula to Rate = Interest / (Principal × Time). Rate = $752.40 / ($2000 × 11.4) = $752.40 / $22800 = 0.033. Therefore, the simple interest rate is 0.033, or 3.3% per year.

answered
User AntonBoarf
by
7.8k points
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