Question

If a 5,000 investment earns 1,575 interest over 18 years, what is the annual investment rate

Answer 1

Answer:

1.75%

Step-by-step explanation:

Step one:

given

principal p=$5000

time= 18years

interest= $1575

Required

Rate R

Applying the simple interest relation we have

SI= PRT/100

1575=5000*R*18/100

1575=90000R/100

cross multiply

90000R=157500

divide through by 90,000

R=157500/90,000

R=1.75%