Discover a wealth of knowledge at Westonci.ca, where experts provide answers to your most pressing questions. Explore thousands of questions and answers from a knowledgeable community of experts ready to help you find solutions. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.
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%
We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.
