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24 August, 14:56

If Nelson invests $5,000 for 4 years and earns $600, what is the simple interest rate?

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  1. 24 August, 15:14
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    Simple interest rate = 3%.

    Since the given invested amount = $5000, number of years of investment = 4 years, interest earned = $600. 600 = 5000 * R * 4, 600 = 20000R, Dividing both sides by 20000, we get 0.003 which is 3%.
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