Mr. Singh invested $9 840 in a bank for 5 years and received $5 141.40 simple interest.Calculate the rate percent per annum that his investment achieved
Question
Mr. Singh invested 5 141.40 simple interest.Calculate the rate percent per annum that his investment achieved
Solution 1
To calculate the rate of interest per annum, we can use the formula for simple interest which is:
I = PRT/100
where: I = Interest P = Principal amount (the initial amount of money) R = Rate of interest T = Time (in years)
In this case, we know that: I = 9,840 T = 5 years
We need to find R. So, we rearrange the formula to solve for R:
R = I * 100 / (P * T)
Substituting the given values:
R = 5141.40 * 100 / (9840 * 5)
R = 514140 / 49200
R = 10.45
So, the rate of interest per annum that Mr. Singh's investment achieved is 10.45%.
Solution 2
To calculate the rate of interest per annum, we can use the formula for simple interest which is:
I = PRT/100
where: I = Interest P = Principal amount (the initial amount of money) R = Rate of interest T = Time (in years)
In this case, we know that: I = 9,840 T = 5 years
We need to find R. So, we rearrange the formula to solve for R:
R = I * 100 / (P * T)
Substituting the given values:
R = 5141.40 * 100 / (9840 * 5)
R = 514140 / 49200
R = 10.45
So, the rate of interest per annum that Mr. Singh's investment achieved is 10.45%.
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