Answer:
R=6%
Step-by-step explanation:
Given:
Total money deposited = $ 520
Total years = 5
Total earned = $156
Simple interest
To Find:
interest rate=R=?
Solution:
We know the formula for calculating total amount earned by a simple interest rate and formula for it is
I = P(rT) ..................(i)
where I is total amount earned
P is total money invested
r is rate
and t is time
putting the values gives us
156 = 520 (r)(5)
156 = 2600 r
dividing both sides by 2600
r = [tex]\frac{156}{2600}[/tex]
r= 0.06
We have to find R
Now from simple rules of
we know that
R = r* 100 %
so putting the value of r
R = 0.06 * 100 %
R = 6%
which is the rate at which money was invested
