Question

'An account started with $1,400 and earned $392 in interest in 4 years what is the annual rate of interest?'

Answer 1

Rate of Interest `R = 7%`

Explanation:

Principal `P = $1,400`/=, Period `N = 4` years, Interest `I = $392`, To find Rate of Interest `R%`.

`I = (P * N * R) / 100`

`R = (100 * I) / (P * N)`

`R = (cancel(100) * cancel(392)^color(red)(98)) / (cancel(1400)^color(red)(14) * cancel4)`

`R = cancel(98)^color(red)(7) / cancel(14)`

Rate of Interest `R = 7%`