Respuesta :
Answer:
The interest rate charged is 3%
Step-by-step explanation:
In this question, we are asked to calculate the rate charged on an amount which yielded an amount after 3 years , if this interest was computed as simple interest.
Mathematically, the formula for simple interest I is as follows;
I = PRT/100
Where I is the simple interest, P is the initial amount saved, R is the rate with T as the time
In the question, we identify the values as follows;
P = $7,002
R = ?
T = 3 years
I = 7632.18 - 7,002 = 630.18
We input the values ;
630.18 = (7002 * R * 3)/100
100 * 630.18 = 21006R
21006R = 63018
R = 63018/21006
R = 3%
Answer:
Rate =3%
Step-by-step explanation:
The formula for Amount in the account at Simple Interest is given by:
Amount = Principal + Simple Interest
Where: [TeX] Simple \: Interest= \frac{Principal X Rate X Time}{100}[/TeX]
Principal = $7,002
Amount=$7,632.18
Simple Interest =$7,632.18-$7,002=$630.18
Time = 3 Years
[TeX] Simple \: Interest= \frac{Principal X Rate X Time}{100}[/TeX]
[TeX] 630.18= \frac{7,002 X Rate X 3}{100}[/TeX]
630.18 X 100 =21006 X Rate
63018=21006 X Rate
Rate = 63018/21006 =3%
The rate is 3%
