Welcome to Westonci.ca, where you can find answers to all your questions from a community of experienced professionals. Connect with professionals ready to provide precise answers to your questions on our comprehensive Q&A platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.
Sagot :
ANSWER
The interest rate is 150%
EXPLANATION:
Given that;
The initial amount is $5000
The total amount $20, 000 after 2 years
Total period of the investment is 2 years
To find the interest rate, follow the steps below
1. Find the interest on the investment after two years
In the given data,
The initial amount (principal) is $5000
The total amount after 2 years is $20, 000
Recall that,
Total amount = Interest + principal
20, 000 = interest + 5000
subtract 5000 from both sides of the equation
20, 000 - 5,000 = interest + 5000 - 5000
15,000 = interest
Therefore, the interest on the investment after 2 years is $15, 000
Step 2; Find the interest rate using the simple interest formula
[tex]\text{ I }=\text{ }\frac{P\times R\times T}{100}[/tex]Where
I is the interest
P is the principal
R is the interest rate
T is the time of the investment
[tex]\begin{gathered} \text{ 15, 000 }=\text{ }\frac{5000\times\text{ r}\times\text{ 2}}{100} \\ \text{ } \\ \text{ 15000 }=\text{ }\frac{10,000r}{100} \\ \text{ 15, 000 }=\text{ 100r} \\ \text{ Divide both sides by 100} \\ \frac{15,000}{100}\text{ }=\text{ }\frac{100r}{100} \\ \text{ r }=\text{ 150\%} \end{gathered}[/tex]Therefore, the interest rate is 150%
Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.
