Respuesta :
The rate of interest is 25%
Explanation:
Given:
Principal, P = $2,000
Amount, A = $2500
Time, t = 1 year
Rate of Interest, r = ?
We know:
[tex]Amount = P(1+\frac{r}{100})^t[/tex]
On substituting the value we get:
[tex]2500 = 2000 (1 + \frac{r}{100})^1\\ \\\frac{25}{20}= (1+\frac{r}{100})\\[/tex]
[tex]\frac{5}{20} = \frac{r}{100}\\ \\r = \frac{100 X 5}{20} \\\\r = 25[/tex]
Therefore, the rate of interest is 25%
Rate of return Alex has received is 25% .
Step-by-step explanation:
Here we have , Alex invests $2,000 in a company's stock. After a year, the value of Alex's stock has increased to $2,500. We need to find What rate of return has Alex received . Let's find out:
Alex initially invested $2000 in a company and after a year Alex's stock has increased to $2500 i.e. by :
⇒ [tex]2500-2000[/tex]
⇒ $[tex]500[/tex]
So, rate of return Alex has received is given by :
⇒ [tex]\frac{2500-2000}{2000}(100)[/tex]
⇒ [tex]\frac{500}{2000}(100)[/tex]
⇒ [tex]\frac{50}{2}[/tex]
⇒ [tex]25\%[/tex]
Therefore , Rate of return Alex has received is 25% .
