Question

George Inkling withdrew $550 simple interest from an account after 5 years. If he invested $3,437.50, how much was his rate of interest?

Answer 1

Answer:

His rate of interest(R) = 3.2%.

Explanation:

As per the given condition we have,

Interest withdrew(I)=$ 550 , Time(T)= 5 years , and the sum invested (P) = $3,437.50.

Use formula:

$I=\frac{P \times R \times T}{100}$

Substituting the above values to find the rate of interest (R);

$550=\frac{3437.50 \times R \times 5}{100}$ or

$R=\frac{550 \times 100}{3437.50 \times 5}$

On simplify we get;

R =3.2%

therefore, his rate of interest(R) is, 3.2%.