You invested $1000 and at the end of one year you had $1090. What was the annual intetest on the investment? Presume simple interest and not compounded.

Question

Mathematics

Karla

15 February, 21:14

You invested $1000 and at the end of one year you had $1090. What was the annual intetest on the investment? Presume simple interest and not compounded.

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Potts · Answer 1

The interest rate will be found as follows:

I = (PRT)

I=1090-1000=$90

thus plugging in the value we get:

90 = (1000*R*1)

90=1000R

thus

R=90/1000

R=0.09~9%