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) \(10\%\)

Answer: D

Source: GMAT Prep

## 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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**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

Answer: D

Cheers,

Brent