An investment of P dollars made at the simple interest rate r for t years will grow to a total T= P +Prt. For an investment of $10,000 to grow to at least $12,000 in two years, what is the minimum interest rate at which it can be invested?

Question

anonymous · Answer

i am also confused in this plz solve it all

anonymous · Answer

T= P +Prt
12000 = 10000 + 10000r(10)
2000 = 100000 r
2000/100000 = r
2/100 = r
Rate is 2%

4meisu · Answer

Mm, no, it's not 2%, (I got the same thing) but the back of the book says 10% and I'm really confused as to how that's the answer.

stormfire1 · Answer

Interest = Principal * rate * time so:
2000 = 10000 * r * (2)
r = 10%.