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an account paying annual interest was ooened with OMR2000 10 years ago. today, the account balance...

an account paying annual interest was ooened with OMR2000 10 years ago. today, the account balance is OMR 3500. if the same interest rate is offered on an account paying simple interest, how much income would be earned each year over the same time period? a. 92.6 b.150 c.56.90 d. 80.40 e.115.20

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Answer #1

account paying annual interest was earned with OMR2000 10 years ago

today, the account balance is OMR 3500

Simple interest rate

how much income would be earned each year over the same time period?

Simple interest(A) = P (1+rt)

P =initial principal balance

r = annual interest rate

t = time (in years)

A = P (1+rt)

3500 = 2000 (1+r*10)

Where

Total interest income = 3500 - 2000 = 1500

.

Total income of each year = 1500 / 10 = 150

Total income of each year = option b.150

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