SOLUTION: Help! Joe Borowski invested $5700 in a mutual fund one year ago. During the year, his fund increased in value by $313.50. What interest rate has Joe's investment earned?

Question 883931: Help!
Joe Borowski invested $5700 in a mutual fund one year ago. During the year, his fund increased in value by $313.50. What interest rate has Joe's investment earned?
Found 2 solutions by josmiceli, jim_thompson5910:
Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
I'm assuming that is is a simple
interest rate
----------------
The fraction of the increase divided
by the original investment is

The % of the increase over the
original investment is:

Joe's investment earned 5.5%

Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!
Assuming simple interest,

I = P*r*t

313.50 = 5700*r*1

313.50 = 5700*r

313.50/5700 = r

0.055 = r

r = 0.055

Which means the fund has an interest rate of 5.5% (simple interest)
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