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Financial Maths, SMB-007

Mr. Soros put $500 into a simple interest account for a year.

He did not take any money out or add any money to the account.

At the end of the year he had $530 in the account.

What was the annual percentage interest rate?   (2 marks)

--- 4 WORK AREA LINES (style=lined) ---

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`text(6%)`

Show Worked Solution
`text(Interest earned)` `= 530-500`
  `= $30`

 

`:.\ text{Interest rate (annual)}`

`= 30/500`

`= 0.06`

`= 6text(%)`

Filed Under: Simple Interest Tagged With: num-title-ct-corea, smc-4332-20-Find interest rate

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