Question

Victor calculates the percentage interest rate he needs to make $500 in simple annual interest over 5 years on a deposit of $1,000. Where did he go wrong? I equals p times r times t; one thousand equals five hundred times r times five; r equals zero point four; r equals forty percent He applied the principal and interest to the wrong variables. He should have divided 2 by twelve to get the value for t. He misrepresented the earned interest with the final balance. He should have multiplied r by one hundred to get the interest rate as a percentage.

Answer 1

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