SOLUTION: If a $55,000 original investment earns simple interest for 3 years, and is worth $65,000, what is the interest rate?

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Question 474033: If a $55,000 original investment earns simple interest for 3 years, and is worth $65,000, what is the interest rate?
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi,

$55,000 original investment earns 'simple interest' for 3 years..

earns ($65,000-$55,000) = $10,000 in interest.

'simple interest'

I = P*r*t

10,000 = 55,000*r*3

 10/3*55 = r

    .0606 = r  Interest rate is 6.06%