mr Flores opened an account with a deposit of 5000. The account earned annual simple interest. He did not make any additional deposits or withdrawals. At the end of 4 years, the balance of the account was 6500 what is the annual interest rate on this account.

Simple interest is a method of calculating the interest charge. Simple interest can be calculated as the product of principal amount, rate and time peroid.

Simple Interest = (Principal × Rate × Time) / 100

First, we need the Simple Interest (S.I)

Total = Principal + Simple Interest

T = P + S.I

6500 = 5000 + S.I

S.I = 6500 - 5000

S.I = 1500

We knoe that

Simple Interest = (Principal × Rate × Time) / 100

S.I = (P × R × T) / 100

1500 = (5000 × R × 4) / 100

1500 = 20000R / 100

1500 = 200R

R = 1500 / 200

R = 7.5

Thus, The annual interest rate is 7.5%

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mr Flores opened an account with a deposit of 5000. The account earned annual simple interest. He did not make any additional deposits or withdrawals. At the end of 4 years, the balance of the account was 6500 what is the annual interest rate on this account.​

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What is simple interest?

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mr Flores opened an account with a deposit of 5000. The account earned annual simple interest. He did not make any additional deposits or withdrawals. At the end of 4 years, the balance of the account was 6500 what is the annual interest rate on this account.