Answer: 6.25% of annual interest
Step-by-step explanation:
$90,000 - $80,000 = $10,000
$80,000___100%
$10,000___x= 12.5%
12.5% / 2 = 6.25%
Answer:the annual interest rate must be 6.25%
Step-by-step explanation:
The initial amount that Anika Bartko had was $80,000
If the amount increases to $90,000, it means that the amount of interest is 90000 - 80000 = $10000
The formula for simple interest is expressed as
I = PRT/100
Where
P represents the principal
R represents the annual interest rate
T represents time
From the information given,
P = $80000
T = 2 years
I = 10000
Therefore
10000 = (80000 × R × 2)/100
10000 = 1600R
R = 10000/1600 = 6.25%
