Question

The simple interest on an investment of $8000 for one year is $360.

What is the interest rate?
A.0.045%
B.0.45%
C.4.5%
D.45%

Answer 1

A

Answer 2

how do you know it is A. can you explain?

Answer 3

Not A.

Answer 4

ok then what would it be

Answer 5

I = PRT (interest = principle * rate * time)...but since we are looking for R. lets change the formula around.....
I / PT = R
I = 360
P = 8000
T = 1
Now we sub
360/(8000)(1) = R
360/8000 = R
0.045 = R....change to a percent = 4.5% (C)

Answer 6

oh thank you. i like how you explained it. thank you for your help

Answer 7

glad to help :)