$600.00 is invested at a simple interest rate r which grows to $800.00 after 12 years. Find the rate r as a percentage.

Question

$600.00 is invested at a simple interest rate
r which grows to $800.00 after 12 years.
Find the rate r as a percentage.

Answer 1

A = p + p · r · t, where A= balance, p= principal, r = rate, t= time

 

800 = 600 + (600)r(12)

200 = 7200r

0.0277 ≈ r

 

The rate is about 2.8%