What is the simple interest rate on a $1800 investment paying $611.82 interest in 10.3 years?
To find the simple interest rate, we can use the formula:
Interest = Principal * Rate * Time
We are given:
Principal (P) = $1800
Interest (I) = $611.82
Time (T) = 10.3 years
Plugging these values into the formula, we get:
611.82 = 1800 * R * 10.3
Simplifying the equation further, we have:
611.82 = 18,540R
To isolate R, we divide both sides of the equation by 18,540:
R = 611.82 / 18,540
R ≈ 0.033 or 3.3% (rounded to the nearest tenth)
Therefore, the simple interest rate on the $1800 investment is approximately 3.3%.