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What annual simple interest rate will increase Jacob Davidson's initial investment of $5,000 to $6,000 in two years? (Hint: Use the formula I = prt and substitute known values to find I.)

Respuesta :

carlosego

Answer: r=10%


Step-by-step explanation:

1. You have that Jacob Davidson's initial investment of $5,000 to $6,000 in two years. Therefore, you must solve for [tex]r[/tex] in the given formula:

[tex]I=prt\\r=\frac{I}{pt}[/tex]

Where I is the interest, p is the principal invested, r is the interest rate and t is the time in years.

2. Substitute values and solve:

[tex]r=\frac{1,000}{(5,000)(2)}\\r=0.1[/tex]

[tex]r=10[/tex]%


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