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At what simple annual interest rate must $2,500 be invested

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by Brent@GMATPrepNow » Sat Oct 05, 2019 6:20 am
AAPL wrote:GMAT Prep

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%

OA D
Let x = the require interest rate

So, x percent of $2500 = $225
In other words: (x percent)($2500) = $225
In other words: x percent = $225/$2500
Divide top and bottom by 5 to get: x percent = 45/500
Divide top and bottom by 5 to get: x percent = 9/100
9/100 = 9%

Answer: D

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Brent
Brent Hanneson - Creator of GMATPrepNow.com
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