Question 86470
Interest formula:
Use the formula for interest (I=Prt)]
I=interest=$275
P=principle=$2500
r=rate
t=time=1
.
Plug in the values and solve for the unknown variable (rate (r)
I=Prt
275=(2500)(r)(1)
275=2500r
275/2500=4
.11=4
(.11)(100%)=4
11%=r
.
check by plugging all of the values back into the original equation and solve:
I=Prt
275=(2500)(.11)(1)
275=275 [checks out]