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30 July, 23:07

An investment of $4000 earns $1700 simple interest after 5 years. what is the annual simple interest rate in the investment?

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  1. 30 July, 23:13
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    8.5% interest rate

    Step-by-step explanation:

    Principle: $4000

    Interest rate: x

    Time : 5 years

    4000 (5) (x) = Interest

    4000x = 1700/5

    4000x = 340

    x = 0.085 or 8.5% interest rate

    Check:

    8.5% x 4000 x 5

    = 340 x 5

    = 1700
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