SOLUTION: At what rate was an investment made that obtains ₱2,520 on ₱10,500 over four years?

Question 1208254: At what rate was an investment made that obtains ₱2,520 on ₱10,500 over four years?
Answer by ikleyn(52777) (Show Source): You can put this solution on YOUR website!
.


From the context, this problem is about simple (not compounded) interest.


Write the basic equation for simple interest

    I = A*r*t,


where  I is the interest,  r is the annual interest rate, t is years.


For our problem, this equation becomes

    2520 = 10500*r*4.


The unknown is "r", and you find it from this equation

    r =  = 0.06.


ANSWER.  The annual interest rate is 0.06, or 6%.

Solved.

------------------

To see many other similar (and different) solved problems on simple interest accounts, look into the lesson
- Simple interest percentage problems
in this site.

Learn the subject from there.

RELATED QUESTIONS
$700 simple interest was earned over 4 years on an investment of $2500. What was the... (answered by Nate)

Find the simple interest on a $1000 investment made for 2 years at an interest rate of... (answered by ewatrrr)

Hi there, I’ve been stuck on this question for a day now and I’ve been using the... (answered by ikleyn)

An investment of $37,000 was deposited in the bank. Interest was computed on a... (answered by mananth)

If over ten years I'd invested $25,000 into an account that grew to be worth $75,000,... (answered by lwsshak3)

Karen invest $500 in a fun for 6 years and was paid simple interest. The total interest... (answered by richwmiller,josgarithmetic)

What rate of interest compounded continuously is needed for an investment of $500 to... (answered by lwsshak3)

What rate of interest compounded continuously is needed for an investment of $500 to grow (answered by lwsshak3)

Find the simple interest on a $200 investment made for 5 years at an interest rate of 8%... (answered by fractalier)