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Algebra

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IF Tony earned $600 after investing $3,000 for five years, what was his interest rate?

  • Algebra -

    I=prt
    600=300(r)(5)
    600= 1500r
    600/1500=r

  • Algebra -

    fruit used "simple interest"

    But for a five year period it is more likely that compound interest would be used

    3600 = 3000(1+i)^5
    1.2 = (1+i)^5
    take the 5th root
    1+i = 1.2^(1/5) = 1.037..
    i = .037
    or 3.7%

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