jali16
Answered

Westonci.ca is the Q&A platform that connects you with experts who provide accurate and detailed answers. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

If money is invested for a short period of time, simple interest is paid using the following formula.

I = Prt

P is the money invested, or principal amount, r is the simple interest rate, and t is the time, in years, the money is invested.

Given P = $2,000, t = 2 years, and I = $280, what is the simple interest rate?

A. 7%

B. 0.7%

C. 8%

D. 0.07%

Sagot :

Lanuel

Answer:

A. 7%

Step-by-step explanation:

Given the following data;

Principal, P = $2,000

Time, T = 2 years

Simple Interest, I = $280

To find the simple interest rate, R?

Mathematically, simple interest is calculated using this formula;

[tex] S.I = \frac {PRT}{100} [/tex]

Where;

  • S.I is simple interest.
  • P is the principal.
  • R is the interest rate.
  • T is the time.

Substituting into the equation, we have;

[tex] 280 = \frac {2000*R*2}{100} [/tex]

Cross-multiplying, we have;

[tex] 280 * 100 = 4000*R[/tex]

[tex] 28000 = 4000R [/tex]

[tex] R = \frac {28000}{4000} [/tex]

Simple interest rate, R = 7%

We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.