The simple interest rate is 10%
Step-by-step explanation:
The formula FV = P + Prt, represents the future value of deposit, where
1. P is the initial deposit
2. r is the rate of interest in decimal
3. t is the time
∵ The initial deposit P = $10,000
∵ Future value FV is double the initial deposit
∴ FV = 2 × 10,000 = $20,000
∵ That happened in 10 years
∴ t = 10 years
Substitute these values in the formula above
∴ 20,000 = 10,000 + 10,000(r)(10)
- Subtract 10,000 from both sides
∴ 10,000 = 100,000 r
- Divide both sides by 100,000
∴ r = 0.1
- Multiply it by 100% to change it to percentage
∴ r = 0.1 × 100% = 10%
The simple interest rate is 10%
Learn more:
You can learn more about interest in brainly.com/question/11149751
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