Question
Morgan earned $80,000 in interest after 20 years. If his original investment was for $50,000 what must the interest rate have been?
HINT: Use the answer choices to figure out what your interest rate would be.
Morgan earned $80,000 in interest after 20 years. If his original investment was for $50,000 what must the interest rate have been?
HINT: Use the answer choices to figure out what your interest rate would be.
8%
4%
5%
2%
HINT: Use the answer choices to figure out what your interest rate would be.
Morgan earned $80,000 in interest after 20 years. If his original investment was for $50,000 what must the interest rate have been?
HINT: Use the answer choices to figure out what your interest rate would be.
8%
4%
5%
2%
Answers
GPT 3.5
To calculate the interest rate, you first need to find the total amount Morgan had after 20 years. This total amount would be: original investment ($50,000) + interest earned ($80,000) = $130,000.
Next, you can calculate the annual interest rate by dividing the total interest earned ($80,000) by the original investment ($50,000) and then dividing by the number of years (20).
($80,000 / $50,000) / 20 = 0.08
This means the annual interest rate is 8%, so the correct answer is 8%.
Next, you can calculate the annual interest rate by dividing the total interest earned ($80,000) by the original investment ($50,000) and then dividing by the number of years (20).
($80,000 / $50,000) / 20 = 0.08
This means the annual interest rate is 8%, so the correct answer is 8%.