With simple interest, one's investment increases the SAME AMOUNT each year, based on the INITIAL investment.datonman wrote:A sum of $16,000 amounts to $18,400 in two years according to simple interest. What is the rate of interest?
1.) 6%
2.) 6.5%
3.) 7.5%
4.) 8%
With simple interest, one's investment increases the SAME AMOUNT each year, based on the INITIAL investment.datonman wrote:A sum of $16,000 amounts to $18,400 in two years according to simple interest. What is the rate of interest?
1.) 6%
2.) 6.5%
3.) 7.5%
4.) 8%
The amount of interest earned is 2,400. Using the formula for simple interest I = P x r x t, where I = interest, P = principal, r = rate, and t = time, we have:datonman wrote:A sum of $16,000 amounts to $18,400 in two years according to simple interest. What is the rate of interest?
1.) 6%
2.) 6.5%
3.) 7.5%
4.) 8%
18,400 = 16,000(1 + R.2)datonman wrote:A sum of $16,000 amounts to $18,400 in two years according to simple interest. What is the rate of interest?
1.) 6%
2.) 6.5%
3.) 7.5%
4.) 8%
