If the simple interest rate on $6600 invested for 5 years was $1650, find the interest rate.

Question

I need this as soon as possible for a maths take home task due tomorrow. Answered replied within next half hour would be appreciated!

Answer 1

the underlying formula that you want to use here is

I = P * r * t

in this case you can rearrange to solve for the variable "r" since we're trying to find the rate

r = I / (P*t)

r = 1650 / (6600 * 5)

r = 1650 / 33000

r = 0.05

meaning that the simple interest rate in this scenario is 0.05 or 5%

Answer 2

For simple interest the formula is

I = Prt

I = interest earned

P = principal amount invested

r = interest rate

t = time

 

1650 = 6600(r)(5)

1650 = 33000r

r = 1650/33000

r = .05 = 5%