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A retired couple invested $10000 in bonds. At the end of one year, they received an interest payment of $690. What was the simple interest rate of the bonds?

Respuesta :

Answer:

Rate of interest = 6.9 %

Step-by-step explanation:

Given in question as,

principal invested = $10000

Interest credited = $ 690

Time taken for the Principal amount = 1 year

Now the interest is applies on simple interest

SO, simple interest = [tex]\frac{Principal times Rate times Time}{100}[/tex]

Or, SI = [tex]\frac{PRT}{100}[/tex]

Or,  690 = [tex]\frac{10000 times 1 times Rate}{100}[/tex]

∴ Rate = [tex]\frac{69000}{10000}[/tex]

Hence Rate of interest= 6.9 %       Answer

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