. A deposit of 7,500 earns 3,900 over a period of 8 years. What is thw simple interest rate?
simple interest is the same every year so
interest = 3900/8 = 487.50 per year
(487.50/7500) 100
= 6.5 %
I = PRT
3900 = 7500 * R * 8
To find the simple interest rate, you can use the formula:
Simple Interest (I) = Principal amount (P) x Rate (R) x Time (T)
In this case, the principal amount (P) is $7,500, the interest earned (I) is $3,900, and the time (T) is 8 years. We need to find the rate (R).
Plugging in the values into the formula, we have:
$3,900 = $7,500 x R x 8
Dividing both sides of the equation by ($7,500 x 8):
$3,900 / ($7,500 x 8) = R
R ≈ 0.0693
To express the interest rate as a percentage, we multiply R by 100:
R = 0.0693 x 100
So, the simple interest rate is approximately 6.93%.
To find the simple interest rate, you can use the formula:
Simple Interest = Principal (P) * Rate (R) * Time (T)
In this case, the principal (P) is the initial deposit of $7,500, the time (T) is 8 years, and the earned interest is $3,900. We need to solve for the rate (R).
So, we can rearrange the formula to solve for the rate (R):
Rate (R) = Simple Interest / (Principal (P) * Time (T))
Substituting the given values into the formula, we have:
Rate (R) = 3,900 / (7,500 * 8)
Now, calculate the rate:
Rate (R) = 3,900 / 60,000
Rate (R) = 0.065 or 6.5%
Therefore, the simple interest rate for this deposit is 6.5%.