SOLUTION: Determine the simple interest rate at which $980 grows to $1,000 in 6 months

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Question 1139787: Determine the simple interest rate at which $980 grows to $1,000 in 6 months
Answer by Edwin McCravy(20066) About Me  (Show Source):
You can put this solution on YOUR website!
If $980 grows to $1000, the interest is $1000-$980 = $20

I+=+p%2Ar%2At

Substitute 20 for I, and 6/12 or 1/2 a year for t

20+=+980%2Ar%2Aexpr%281%2F2%29

20=489%2Ar

20%2F489=r

0.0408997955=r

Answer 4.08997955% (round that off as your teacher told you to.

Edwin