SOLUTION: Determine the simple interest rate at which $2400 will grow to $2500 in 8 months.

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Question 715884: Determine the simple interest rate at which $2400 will grow to $2500 in 8 months.
Found 2 solutions by jim_thompson5910, stanbon:
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
A = P(1+rt)

2500 = 2400(1+r*8/12)

2500/2400 = 1+r*8/12

25/24 = 1+r*8/12

25/24 = 1+8/12*r

25/24-1 = 8/12*r

1/24 = 8/12*r

(1/24)*(12/8) = r

1/16 = r

r = 1/16

r = 0.0625

r = 6.25%

So you would need a 6.25% interest rate

Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
Determine the simple interest rate at which $2400
will grow to $2500 in 8 months.
-------
A(t) = P(1+rt)
----
2500 = 2400(1+r(8/12))
----
1 + (2/3)r = 25/24
-----
(2/3)r = 1/24
------
r = (3/2)(1/24)
------
r = 1/(2*8) = 1/16 = 0.0625 = 6.25%
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Cheers,
Stan H.
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