Question

What would the simple interest rate be if you earned $136 on a $1,700 investment in one year.?

Answer 1

Solve for i:

1700i = 136

Answer 2

The usual formula is:

A = P(1 + ni)

where A is the accumulation, P the initial amount, n the time in years and i the interest rate.

We can show it works using this formula:

1836 = 1700(1 + i)
1836 = 1700 + 1700i
136 = 1700i

which is the same as above

Answer 3

I=PRT is the simple interest rate formula
I= Interest earned
P=Premium
R=Rate
T=Time

Plug it in and you get your answer. The above"A = P(1 + ni)" also give you the same answer.