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
Solution
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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