SOLUTION: At what rate of simplest interest will 1000 accumulate to 1420 in 2.5 years, money double itself in 8 years? 500 accumulate 10 interest in 2 years?

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Question 1014739: At what rate of simplest interest will 1000 accumulate to 1420 in 2.5 years, money double itself in 8 years? 500 accumulate 10 interest in 2 years?
Answer by macston(5194) About Me  (Show Source):
You can put this solution on YOUR website!
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1). At what rate of simple interest will 1000 accumulate to 1420 in 2.5 years?
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1420-1000=420 you need 420 in interest
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420/2.5=168 you need 168 in interest per year.
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(168/1000)(100%)=16.8%
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ANSWER 1: 16.8%
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2). At what rate will 1000 double itself in 8 years?
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To double you need 1000 in interest total
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1000/8 yrs=125/yr you need 125 in interest per year
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(125/1000)(100%)=12.5%
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ANSWER 2: 12.5%
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3). At what rate will 500 earn 10 in interest in 2 years?
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10/2 years = 5 per year You need to earn 5 per year
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(5/500)(100%)= 1%
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ANSWER 3: 1%