Question

A $7000 investment earns $840 annual simple interest in one year. What is the annual interest rate?

A.12%
B.12.5%
C.13%
D.13.5%

Answer 1

any ideas?

Answer 2

no

Answer 3

$$\text{Amount invested X Annual interest rate = Annual simple interest}$$

Answer 4

i need the interest rate not the simple interest rate

Answer 5

The question asks for the "annual interest rate."

Answer 6

yes

Answer 7

your equation was to find anual simple interest rate

Answer 8

Amount invested = $7000

Annual simple interest = $840

Substitute those two values into the formula and solve for the unknown.

Answer 9

This is a skill you will use in math a lot.