Mr. Michalec opened an account with a deposit of 5000The account earned annual simple interest.He did not make any additional deposits or withdrawals.At the end of 4 years, the balance of the account was 6500What is the annual interest rate on this account, write the rate as a decimal?

Solución

Solución

Rate : 7.5%

Pasos de solución

Translate the problem into an equation:

6500 = 5000 (1 + r \cdot 4)

Resolver para

r, 6500 = 5000 (1 + r \cdot 4) : r = 7.5%

Rate : 7.5%

Ejemplos populares

one half of a number is one more than one third of the same number If the sum of five consecutive even integers is 100, what is the smallest of the five integers?A turtle travels 0.15 miles per hour. How far will the turtle travel in 14.5 hours?The radius of a circle is 3cm Find its circunferencia in terms of pi A person places 5800 in an investment account earning an annual rate of 7.9%, compounded continuously. Using the formula V, equals, P, e, start superscript, r, t, end superscriptV=Pe^{rt}, where V is the value of the account in t years, P is the principal initially invested, e is the base of a natural logarithm, and r is the rate of interest, determine the amount of money, to the nearest cent, in the account after 11 years.