What annual interest rate must Anika Bartko earn to have $80,000 increase to $90,000 in two years?

Answer:the annual interest rate must be 6.25%

Step-by-step explanation:

The initial amount that Anika Bartko had was $80,000

If the amount increases to $90,000, it means that the amount of interest is 90000 - 80000 = $10000

The formula for simple interest is expressed as

I = PRT/100

Where

P represents the principal

R represents the annual interest rate

T represents time

From the information given,

P = $80000

T = 2 years

I = 10000

Therefore

10000 = (80000 * R * 2) / 100

10000 = 1600R

R = 10000/1600 = 6.25%

Answer: 6.25% of annual interest

Step-by-step explanation:

$90,000 - $80,000 = $10,000

$80,000___100%

$10,000___x = 12.5%

12.5% / 2 = 6.25%