To find: The annual rate of interest after one year.
The annual rate of interest after one year is 7.5%.
Given:
The invested amount is $3500 and the interest received after 1 year is $262.50.
Calculation:
Let the rate of interest is x.
Tabulate the given information into the language of algebra.
In words | In Algebra |
Rate of interest | x |
Rate of interest at amount $3500 | 3500x |
Model the equation for the above information.
Simplify the above equation for x,
Thus, the annual rate of interest after one year is 7.5%.