Answer:
The interest rate was 2%
Step-by-step explanation:
we know that
The simple interest formula is equal to
[tex]A=P(1+rt)[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest
t is Number of Time Periods
in this problem we have
65 hundred dollars=$6,500
so
[tex]t=15\ years\\ P=\$5,000\\ A=\$6,500\\r=?[/tex]
substitute in the formula above
[tex]6,500=5,000(1+15r)[/tex]
solve for r
[tex]\frac{6,500}{5,000}=(1+15r)[/tex]
[tex]1.3=(1+15r)[/tex]
[tex]15r=1.3-1[/tex]
[tex]15r=0.3[/tex]
[tex]r=0.02[/tex]
Convert to percentage
[tex]r=0.02*100=2\%[/tex]
