Question

david invested $25850 for 8 years and received $6204.00 in interest. At what rate did he invest if interest was calculated using the simple interest formula?

Answer 1

The simple interest formula is,

$I=C\cdot r \cdot T/100$

Where I is the interest, C is the initial Capital, r is the rate and T is the time. So you have,

$6204=25850\cdot r \cdot 8 \Rightarrow r = 3\%$