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8 August, 04:53

Jake earned $430 in interest on a $2500 investment after 18 months. What was the annual interest rate? (round to the nearest whole percent)

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Answers (2)
  1. 8 August, 07:23
    0
    17% interest rate will give you 425 dollars
  2. 8 August, 07:39
    0
    I=PRT

    I=interest

    P=principal=investment

    R=rate in decimal

    T=time in years

    remember 12 months per year

    given

    I=430

    P=2500

    R=?

    T=18/12 years=1.5years

    430=2500 times r times 1.5

    430=3750r

    divide both sides by 430

    0.1146666=r

    11.4666%

    11%
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