What was the interest rate if your balance on an investment of ₱27,750 at the end of six years is ₱41,070
Answer (1)
To find the interest rate use this formula[tex]\mathsf{I = P \times r \times t}[/tex]Where: I = interest earnedP = principal or initial investmentr = interest rate per year (in decimal) t = time in years[tex]\mathsf{I = 41,070 - 27,750 = 13,320}[/tex][tex]\mathsf{13,320 = 27,750 \times r \times 6}[/tex][tex]\mathsf{13,320 = 166,500r}[/tex][tex]\mathsf{r = \frac{13,320}{166,500} = 0.08}[/tex][tex]\mathsf{r = 8\%}[/tex]Therefore the interest rate is 8℅
