What simple interest rate would Peter have to receive to have an investment of $3750 amount to $4305 in 2 years?2. What simple interest rate would Peter have to receive to have an investment of $3750 amount to $4305 in 2 years?
What simple interest rate would Peter have to receive to have an investment of $3750 amount to $4305 in 2 years?
let r = rate let m = 1 + r
3750 x m2 = 4305
m2 = 4305 / 3750
m2 = 1.148
m = 1.07145
r = m – 1
r = 1.07145 – 1
r = 0.07145
expressed as percentage = 7.145 %
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