A $7000 investment earns $1330 simple interest in two years. What is the annual interest rate?

A.
1.90%

B.
3.80%

C.
9.50%

D.
19.0%

Question

A $7000 investment earns $1330 simple interest in two years. What is the annual interest rate?
 
 A.
1.90%
 
 B.
3.80%
 
 C.
9.50%
 
 D.
19.0%

jim_thompson5910 · Answer

You'll use the formula I = P*r*t where the interest earned is I = 1330, the amount invested is P = 7000 and the time is t = 2 years. 

So,

I = P*r*t

1330 = 7000*r*2

then you solve for r

jim_thompson5910 · Answer

The value of r that you get will be in decimal form. Multiply that result by 100 to convert to percent form.

anonymous · Answer

so... i guess ill take the red pill.

anonymous · Answer

WELCOME TO THE MATRIX