If $9000 grows to $9720 in 2 years find the simple interest rate.

Discussion in 'Calculator Requests' started by math_celebrity, Mar 6, 2018.

  1. math_celebrity

    math_celebrity Administrator Staff Member

    If $9000 grows to $9720 in 2 years find the simple interest rate.

    Simple interest formula is Initial Balance * (1 + tn) = Current Balance
    We have
    • Initial Balance = 9000
    • Current Balance = 9720
    • n = 2
    Plugging in these values, we get:
    9000 * (1 + 2t) = 9720

    Divide each side by 9000
    1 + 2t = 1.08

    Subtract 1 from each sdie
    2t = 0.08

    Divide each side by 2
    t = 0.04 or 4%
     

Share This Page