After 12 years, a deposit of Php 10,000 into your college account has earned Php 6,000 in interest payments. What simple interest rate did the account earn?*3 points25%50%7%5%
Question
After 12 years, a deposit of Php 10,000 into your college account has earned Php 6,000 in interest payments. What simple interest rate did the account earn?*3 points25%50%7%5%
Solution
To calculate the simple interest rate, you can use the formula for simple interest which is I = PRT, where I is the interest, P is the principal amount (initial investment), R is the annual interest rate in decimal form, and T is the time in years.
In this case, you know the interest (I) is Php 6,000, the principal (P) is Php 10,000, and the time (T) is 12 years. You're solving for the rate (R).
Rearranging the formula to solve for R gives you R = I / (PT).
Substituting the given values into the formula gives you R = 6000 / (10000 * 12) = 0.05.
So, the annual interest rate is 0.05, or 5% when expressed as a percentage. Therefore, the answer is 5%.
Similar Questions
If PHP 8,000.00 is invested at a rate of 6% per annum for 3 years, what is the simple interest earned?*1 pointPHP 1,800.00PHP 1,440.00PHP 1,080.00PHP 960.00Option 4
WHAT WAS THE EXACT SIMPLE INTEREST RATE USING AN APPROXIMATE TIME IF THE AMOUNT OF PHP 15,000 EARNED PHP 2000 FROM JULY 10, 2022 TO AUGUST 20, 2023?A. 10% B. 11% C. 12% D. 13%
If you borrow Php1,500 at a simple interest rate of 9% per year for 6 months, what is the total interest you will pay?Question 13Answera.Php112.50b.Php90c.Php67.50d.Php75Clear my choice
Jenna borrowed Php 5,000 for 3 years and had to pay Php 1,350 simple interest at the end of that time. What rate of interest did she pay?
Mr. X borrows Php 25,000 with interest at 5.15% to be paid at the end of 2.5 years? What type of interest rate is 5.15%(2 Points)Simple interest rateNominal interest rateEffective rateCompound interest rate
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.