SOLUTION: Please help with the following. An amount of R1200 accumulates to R2600 after 3years find the interest rate, if the investment earned simple interest.

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Question 1185721: Please help with the following.
An amount of R1200 accumulates to R2600 after 3years find the interest rate, if the investment earned simple interest.
Answer by ikleyn(52914) About Me  (Show Source):
You can put this solution on YOUR website!
.

    Future value = P + P*r*t


P is the principal amount (deposit);

r is the annual percentage rate;

t is the time in years.


    2600 = 1200 + 1200*r*3

    2600 - 1200 = 1200*r*3

       1400     = 3600*r

         r      = 1400%2F3600 = 0.389 = 38.9%.    ANSWER

Solved.


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To see many other similar  (and different)  solved problems on simple interest accounts,  look into the lesson
    - Simple interest percentage problems
in this site.


Learn the subject from there.