SOLUTION: 'What annual rate of interest would you have to earn on an investment of $2500 to ensure receiving $152.50 interest after 1 year?'

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Question 609921: 'What annual rate of interest would you have to earn on an investment of $2500 to ensure receiving $152.50 interest after 1 year?'
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi, re TY, please post so as Inquiry is placed in proper section. TY.

'What annual rate of interest would you have to earn on an investment of $2500

 to ensure receiving $152.50 interest after 1 year?'

In General A+=+P%281%2Br%2Fn%29%5Ent

A = Accumulated Amount = $2652.50

P= principal = $2500

r= annual rate = 

n= periods per year = 1

t= years =  1

+2650.50+=+2500%281%2B+r%29%5E%281%2A1%29

  2650.50/2500 -1 = r

 r = .061  or 6.1%