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Answer :

The future value for simple interest is given by the following formula:

[tex]A=P(1+rt)[/tex]

Where A is the future value, r is the rate of interest, t the time and P the present value. Now we solve for the rate of interest "r" first by dividing both sides by "P":

[tex]\frac{A}{P}=1+rt[/tex]

Now we subtract 1 to both sides:

[tex]\frac{A}{P}-1=rt[/tex]

Dividing both sides by "t":

[tex]\frac{A}{Pt}-\frac{1}{t}=r[/tex]

Replacing the known values:

[tex]\frac{11349}{(7800)(7)}+\frac{1}{7}=r[/tex]

Solving the operations:

[tex]0.35=r[/tex]

Therefore, the annual rate of interest is 35%.

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