Andrew thinks he has a good thing going. He invests $8,000 with the firm Dewey, Cheatham, and Howe, purchasing a CD (certificate of deposit) that after 10 years will be worth $9,600. The trouble is, Andrew did not consult his investment advisor before putting his money down, and this sneaky company has locked him into an investment that pays simple interest, not compound interest, on his principal.

What percent is the company's yearly interest rate? Round to the nearest whole number and do not include units in your answer.

Question

Andrew thinks he has a good thing going. He invests $8,000 with the firm Dewey, Cheatham, and Howe, purchasing a CD (certificate of deposit) that after 10 years will be worth $9,600. The trouble is, Andrew did not consult his investment advisor before putting his money down, and this sneaky company has locked him into an investment that pays simple interest, not compound interest, on his principal.

What percent is the company's yearly interest rate? Round to the nearest whole number and do not include units in your answer.

anonymous · Answer

Final amount=9600
What he invested=8000
Interest earned=1600
rate=a
Interest formula
8000*a=1600

anonymous · Answer

the 't' is missing above post
8000*a*t=1600
8000*a*10=1600

anonymous · Answer

80000a=1600
a=.02
remember this is decimal, what do you do to get percent?

anonymous · Answer

move the point 2 untis to the right
i shouild really learn to b patient cuz wen u said 9600 i thought that was the answer but then u just gave me the explanation and everything and i got it wrong cuz i was impatient

anonymous · Answer

So 2% right?

anonymous · Answer

yup

anonymous · Answer

good