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If the simple interest on $1000 for 5 years is $250, then what is the interest rate?
Question
If the simple interest on $1000 for 5 years is $250, then what is the interest rate?
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Mathematics
3 years
2021-08-17T16:48:38+00:00
2021-08-17T16:48:38+00:00 2 Answers
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Answers ( )
Answer:
5%
Step-by-step explanation:
Interest earned=
PV-PV(1+it)
we have
250=1000-1000(1+5i)
solve for i
-750= -5000i
250= -5000i
.05= i
Step-by-step explanation:
i=prt
250=(1000)((5)
250= 5000 r
250/5000 = r
r=0.05 or 5% internet rate