A $6000 investment earns $690 simple interest in two years. What is the annual interest rate?

A.

1.15%

B.

5.75%

C.

11.5%

D.

57.5%

Question

Alyson Blackburn

Mathematics

16 February, 04:18

A $6000 investment earns $690 simple interest in two years. What is the annual interest rate?

A.

1.15%

B.

5.75%

C.

11.5%

D.

57.5%

+3

Answers (1)

Know the Answer?

Jax Spencer · Answer 1

2 years simple interest is $690

1 year simple interest is $690/2 = $345

$6000 simple interest is $345

$1000 simple interest is $345/6 = $57.5

$100 simple interest is $57.5/10 = $5.75

Annual interest rate is 5.75%

A $6000 investment earns $690 simple interest in two years. What is the annual interest rate?A.1.15%B.5.75%C.11.5%D.57.5%

A $6000 investment earns $690 simple interest in two years. What is the annual interest rate?

A.

1.15%

B.

5.75%

C.

11.5%

D.

57.5%