BuyFind

Precalculus: Mathematics for Calcu...

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

Precalculus: Mathematics for Calcu...

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

Solutions

Chapter 1.6, Problem 23E
To determine

To find: The annual rate of interest after one year.

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%.

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