Respuesta :
The simple interest rate on a 1150$ investment paying 202.86$ interest in 3.6 years is 4.9%
Solution:
Given that
Amount invested = $1150
Interest earned on investment = $202.86
Duration of investment = 3.6 years.
Need to determine rate of interest
Let’s assume rate of interest in percentage be represented by variable "x"
Formula for Simple interest is as follows:
[tex]\text { simple interest }=\frac{\text { Principal } \times \text {rate of interest } \times \text { duration in years }}{100}[/tex]
In our case simple interest = $202.86, principal = 1150 , rate of interest = x , duration = 3.6 years
On substituting the values in formula we get
[tex]202.86=\frac{1150 \times x \times 3.6}{100}[/tex]
On solving above expression for x, we get
[tex]\begin{array}{l}{\frac{202.86 \times 100}{1150 \times 3.6}=x} \\\\ {\Rightarrow x=\frac{20286}{4140}=4.9}\end{array}[/tex]
Hence simple interest rate on a 1150$ investment paying 202.86$ interest in 3.6 years is 4.9%
