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?

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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) About Me  (Show Source):
You can put this solution on YOUR website!

given:
P+=8500
I=3612.5
t=5
subsitute the values into the formula,
I+=Prt
3612.5+=+8500+%2A+r+%2A+5
3612.5+=+42500r
To find r, divide both sides of the equation with 42500.
3612.5+%2F42500+=+42500r+%2F42500
0.085+=+r
Hence, the interest rate was+0.085 or 8.5%

Answer by ikleyn(52775) About Me  (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  %28722.5%2F8500%29%2A100 = 8.5%.    ANSWER

Solved.