## At what simple annual interest rate must $$\2,500$$ be invested if it is to earn $$\225$$ in interest in one year?

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### At what simple annual interest rate must $$\2,500$$ be invested if it is to earn $$\225$$ in interest in one year?

by M7MBA » Fri Jan 14, 2022 9:15 am

00:00

A

B

C

D

E

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At what simple annual interest rate must $$\2,500$$ be invested if it is to earn $$\225$$ in interest in one year?

(A) $$6\%$$
(B) $$7\%$$
(C) $$8\%$$
(D) $$9\%$$
(E) $$10\%$$

Source: GMAT Prep

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### Re: At what simple annual interest rate must $$\2,500$$ be invested if it is to earn $$\225$$ in interest in one year?

by [email protected] » Sat Jan 15, 2022 7:56 am
M7MBA wrote:
Fri Jan 14, 2022 9:15 am
At what simple annual interest rate must $$\2,500$$ be invested if it is to earn $$\225$$ in interest in one year?

(A) $$6\%$$
(B) $$7\%$$
(C) $$8\%$$
(D) $$9\%$$
(E) $$10\%$$

Source: GMAT Prep
Let x = the PERCENT annual interest rate

So, we want: x percent of $2,500 = 225 Rewrite as: x/100 of$2,500 = 225
In other words: (x/100)(2,500) = 225
Simplify: 2500x/100 = 225
Simplify again: 25x = 225
Solve: x = 225/25 = 9