SOLUTION: What was the interest rate if your balance on an investment of ₱27,750 at the end of six years is ₱41,070?

Question 1208253: What was the interest rate if your balance on an investment of ₱27,750 at the end of six years is ₱41,070?
Answer by math_tutor2020(3817) (Show Source): You can put this solution on YOUR website!

I'll assume you are using simple interest (instead of compound interest).
A = P*(1 + r*t)
41070 = 27750*(1 + r*6)
6r+1 = 41070/27750
6r+1 = 1.48
6r = 1.48-1
6r = 0.48
r = 0.48/6
r = 0.08
The simple interest rate is 8%

Check:
A = P*(1 + r*t)
A = 27750*(1 + 0.08*6)
A = 41070
The answer is confirmed.

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