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An engineer invested $10,000 in a six-month savings certificate that paid a simple annual interest rate of 12%. After six months, she invested the total value of her investment in another six-month certificate. After six more months, the investment was worth $11,130. If the annual interest rate of the second certificate is r% then what is r?

 Jul 10, 2020
 #1
avatar+27666 
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10000     + 10000 x (.12)  x   6mos/ 12mos   = amount after 6 months at 12% simple = 10600

 

10600     +10600 x (r)    x 1/2      = 11130     after six more months at   rate, r

r = .1     ~~ = 10%

 Jul 10, 2020
 #2
avatar+176 
+2

Thanq, it was correct.

BillyBobJoeJr  Jul 11, 2020

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