Yesenia invested $50,000 five years ago in a simple interest investment. She now has $55,750. What annual interest rate was her investment earning? Round to the nearest tenth
Given,
Present value = $55750
Investment 5 years ago = $50000
No. of years (n) = 5 years
Solution :-
Annual interest = (Present value - investment 5 years ago) n
= ($55750 - $50000) 5 years
= $5750 5 years = $1150
Annual interest rate = Annual interest investment 5 years ago
= $1150 $50000 = 0.023 or 2.30%
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