Question 1208254: At what rate was an investment made that obtains ₱2,520 on ₱10,500 over four years?
Answer by ikleyn(52776)   (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.
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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.
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