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
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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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
Brent Hanneson - Creator of GMATPrepNow.com
