SOLUTION: If the intreset value of saving $ 24000 is $ 6000 for a period of 5 years, then find the rate of interest per year.

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Question 698373: If the intreset value of saving $ 24000 is $ 6000 for a period of 5 years, then find the rate of interest per year.
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
I = Prt

6000 = 24000*r*5

6000 = 120000r

6000/120000 = r

r = 6000/120000

r = 6/120

r = 1/20

r = 0.05

So the interest rate is 5%