SOLUTION: a businessman invests an amount of Php 300,000 in a bank,the simple interest is Php 365,000 for 5 years. what interest rate is applied by the bank?

Question 1175038: a businessman invests an amount of Php 300,000 in a bank,the simple interest is Php 365,000 for 5 years. what interest rate is applied by the bank?

Found 3 solutions by MathLover1, ikleyn, MathTherapy:
Answer by MathLover1(20849)   (Show Source): You can put this solution on YOUR website!

given:

years

total amount is:

to find interest rate, use

=>as decimal
interest rate is:

%

Answer by ikleyn(52781)   (Show Source): You can put this solution on YOUR website!
.

            In her solution, @MathLover makes a lot of unnecessary calculations.

            It is not a good style.

            More rational way to solve the problem is THIS:

Since simple interest in 5 years is Php 365,000, the annual simple interest is = 73,000. Hence, the interest rate is r = = 0.2433... = 0.2433 (rounded) = 24.33%. ANSWER

That's all. Two-three lines are totally enough for such simple problem.

Performing unnecessary calculations does not make the solution better.

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

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

Answer by MathTherapy(10552)   (Show Source): You can put this solution on YOUR website!
a businessman invests an amount of Php 300,000 in a bank,the simple interest is Php 365,000 for 5 years. what interest rate is applied by the bank?

Simple Interest (SI) = PTR
365,000 = 300,000(5)R ----- Substituting 365,000 for SI, 300,000 for P, and 5 for T

Interest rate, or
I agree with you 100%, Tutor @IKLEYN! I know students who're completely CONFUSED and who have chosen to request that certain people on here
(don't need to name names) not answer their post(s).
Why even calculate the accumulated amount, although it's just adding the 2 given numbers? It makes ABSOLUTELY no sense!
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