Question
At what annual rate of simple interest should R18 500.00 be invested in order to receive an amount of R21 340.38 after a term of 6 years? Choose the correct option below.
2.56%
0.21%
2.41%
-2.22%
0.0256%
2.56%
0.21%
2.41%
-2.22%
0.0256%
Answers
GPT 3.5
2.41%
To calculate the annual interest rate, we can use the formula:
A = P(1 + rt)
Where A is the total amount after the investment period, P is the principal amount (R18,500.00 in this case), r is the interest rate, and t is the time period in years.
Plugging in the values we know:
21,340.38 = 18,500(1 + 6r)
Solving for r:
21,340.38 = 18,500(1 + 6r)
21,340.38 = 18,500 + 111,000r
2,840.38 = 111,000r
r ≈ 2.41%
Therefore, the correct option is 2.41%.
To calculate the annual interest rate, we can use the formula:
A = P(1 + rt)
Where A is the total amount after the investment period, P is the principal amount (R18,500.00 in this case), r is the interest rate, and t is the time period in years.
Plugging in the values we know:
21,340.38 = 18,500(1 + 6r)
Solving for r:
21,340.38 = 18,500(1 + 6r)
21,340.38 = 18,500 + 111,000r
2,840.38 = 111,000r
r ≈ 2.41%
Therefore, the correct option is 2.41%.