Problema Solution
Kenny invested $12950 for 8 years and received $1036.00 in interest. At what rate did he invest if the interest was calculated using the simple interest formula?
Answer provided by our tutors
P = $12,950 is the principal
t = 8 years the time
I = $1036.00 is the interest
r = ? the rate
Since I = P*r*t we have:
1036 = 12950*r*8
12950*r*8 = 1036
by solving we find:
r = 0.01 or 10%
click here to see the step by step solution of the equation:
Kenny invested at a rate of 10% per year.