SOLUTION: An investor earned $712.50 on an investment of $30,000 in 95 days. Find the annual simple interest rate earned on the investment.

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Question 1095370: An investor earned $712.50 on an investment of $30,000 in 95 days. Find the annual simple interest rate earned on the investment.
Found 2 solutions by addingup, MathTherapy:
Answer by addingup(3677) About Me  (Show Source):
You can put this solution on YOUR website!
A = P(I*t)
A = P*I*t
A/P*t = I
712.50/(30000*95) = 0.00025
0.00025(365) = 0.09125
The annual interest rate is 9.125%

Answer by MathTherapy(10549) About Me  (Show Source):
You can put this solution on YOUR website!
An investor earned $712.50 on an investment of $30,000 in 95 days. Find the annual simple interest rate earned on the investment.
Simple Interest = PTR



 ---- Cancelling FACTOR in numerator and denominator

matrix%281%2C3%2C+712.5%2C+%22=%22%2C+%226%2C000%2895%29R%22%2F73%29%29

6,000(95)R = 73(712.5) ------- Cross-multiplying

matrix%281%2C3%2C+R%2C+%22=%22%2C+73%28712.5%29%2F%28%226%2C000%2895%29%22%29%29%29

Using a calculator, you get SIMPLE INTEREST, or