# The annual rate of interest after one year.

### Precalculus: Mathematics for Calcu...

6th Edition
Stewart + 5 others
Publisher: Cengage Learning
ISBN: 9780840068071

### Precalculus: Mathematics for Calcu...

6th Edition
Stewart + 5 others
Publisher: Cengage Learning
ISBN: 9780840068071

#### Solutions

Chapter 1.6, Problem 23E
To determine

Expert Solution

## Answer to Problem 23E

The annual rate of interest after one year is 7.5%.

### Explanation of Solution

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.

Interest=Principal×rate×time262.50=3500×x×1

Simplify the above equation for x,

262.50=3500xx=262.503500x=0.075x=7.5%

Thus, the annual rate of interest after one year is 7.5%.

### Have a homework question?

Subscribe to bartleby learn! Ask subject matter experts 30 homework questions each month. Plus, you’ll have access to millions of step-by-step textbook answers!