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Financial Maths, SMB-011

George makes a single deposit of $9000 into an account that pays simple interest.

After 4 years, George's account has a balance of $10 350.

What simple interest rate did George receive on his investment?   (2 marks)

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

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`3.75text(%)`

Show Worked Solution
`text(Interest earned)` `= 10\ 350-9000`
  `= $1350`

 

`text(Using)\ \ I = Prn,`

`1350` `= 9000 xx r xx 4`
`:. r` `= 1350/(4 xx 9000)`
  `= 0.0375`
  `= 3.75text(%)`

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

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