Question

A $5000 investment earns $1575 simple interest in three years. What is the annual interest rate?









A.

1.05%








B.

3.15%








C.

10.5%








D.

31.5%

Answer 1

Use the formula:

I = prt

1575 = (5000)(3)r

Multiply 5000 * 3

Answer 2

is my answer 10.5

Answer 3

Correct.

Answer 4

500 * 3 = 15000

1575 = 15000r

1575 / 15000 = 0.105

0.105 * 100 = 10.5%

r = 10.5%

Answer 5

how did you get the 3?