A man earns $112 interest in one year on an investment of $1400. What was his rate of interest?

Accepted Solution

Answer:8%Step-by-step explanation:Interest = $112Principal = $1400Rate = Percentage Per YearTime = 1 Year I = PRT[tex]112 = (1400 )(R)(1)[/tex] Multiply everything together...[tex]\frac{112}{1400} = \frac{1400R}{1400}[/tex]Divide both sides by 1400. [tex]\frac{112}{1400} = R[/tex]Simplify.[tex]\frac{112}{1400} = \frac{2}{25}[/tex][tex]\frac{2}{25} = 0.08[/tex]Simplify the fraction. Feel free to flip the equation (Put the R on the right side of the = instead of the left). [tex]\frac{2}{25} = 0.08[/tex]Change the fraction into a decimal. [tex]R = 0.08[/tex]Turn this number into a percentage and we have our answer:R = Β 8% per year