SOLUTION: An amount of P 8500 was invested at a Simple Interest rate and after 5 years it earned an Interest amount of P 3612.5. What was the interest rate?

Question 1197288: An amount of P 8500 was invested at a Simple Interest rate and after 5 years it earned an Interest
amount of P 3612.5. What was the interest rate?
Found 2 solutions by MathLover1, ikleyn:
Answer by MathLover1(20849) (Show Source): You can put this solution on YOUR website!

given:

subsitute the values into the formula,

To find r, divide both sides of the equation with .

Hence, the interest rate was or %

Answer by ikleyn(52776) (Show Source): You can put this solution on YOUR website!
.

The total earned interest in 5 years is P 3612.5. It gives the rate of P 3612.5/5 = P 722.5 per year. In percentage, this rate is = 8.5%. ANSWER

Solved.

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