Determine the interest rate earned on a $1,400 deposit when $1,800 is paid back in one year. (Round the answer to 2 decimal places.)

Question:

Interest Rate Earned:

The Interest Rate Earned represents the amount of interest that is accrued or paid over time relative to the amount invested or borrowed. The interest rate earned or paid depends on several factors.

Answer and Explanation:1

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The calculation of the interest rate earned is as follows:

{eq}\begin{align*}{\rm\text{I}} &= {\rm\text{P}} \times {\rm\text{r}} \times...

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Simple Interest Definition, Formula & Examples

from

Chapter 2/ Lesson 8

1.1M

Learn how to find simple interest using the simple interest formula. Understand the formula's variables, and practice calculating simple interest with examples.

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Determine the interest rate earned on a $1,400 deposit when $1,800 is paid back in one year. (Round the answer to 2 decimal places.) | Homework.Study.com? ›

Answer and Explanation:

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What is the interest rate earned on a $1400 deposit when $1800 is paid back in one year? ›

The interest rate for a deposit of $1,400 that returned $1,800 in one year is 28.57%.

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What is the interest rate earned on a $1950 deposit when $2250 is paid back in one year? ›

Determine the interest rate earned on a $1,950 deposit when $2,250 is paid back in one year. $1,950 × (1 + i) = $2,250; Solving for i yields 0.1538, or 15.38 percent.

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How do you consider a $2 000 deposit earning 8 percent interest per year for 5 years? ›

Plugging these values into the formula, we get: Future Value = $2,000 × (1 + 0.08)^5 Calculating the value inside the parentheses first, we have: Future Value = $2,000 × (1.08)^5 Raising 1.08 to the power of 5, we find: Future Value ≈ $2,000 × 1.46933 Multiplying $2,000 by 1.46933, we get: Future Value ≈ $2,938.66 ...

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What is the future value of $700 deposited for one year earning 4 percent interest rate annually? ›

The future value of $700 deposited for one year earning a 4 percent interest rate annually is $728 (option d).

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How to calculate the interest rate? ›

To calculate interest rates, use the formula: Interest = Principal × Rate × Tenure. This equation helps determine the interest rate on investments or loans. What are the advantages of using a loan interest rate calculator? A loan interest rate calculator offers several benefits.

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How to calculate interest earned? ›

The formula for calculating simple interest is A = P x R x T.

A is the amount of interest you'll wind up with.
P is the principal or initial deposit.
R is the annual interest rate (shown in decimal format).
T is the number of years.

May 15, 2023

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How do you calculate interest deposit? ›

The formula for Simple Interest (SI) is “principal x rate of interest x time period divided by 100” or (P x R x T/100). Example, Now, if you invest INR 10,000 at 8% p.a. for 5 years, you can calculate the interest like this.

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What is the formula for interest? ›

The formula for calculating simple interest is: Interest = P * R * T. P = Principal amount (the beginning balance). R = Interest rate (usually per year, expressed as a decimal). T = Number of time periods (generally one-year time periods).

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How much is $1000 worth at the end of 2 years if the interest rate of 6% is compounded annually? ›

$1000 compounded daily at a 6% interest rate will grow to approximately $1127.49 after 2 years using the compound interest formula. To determine how much $1000 is worth at the end of 2 years with an interest rate of 6% compounded daily, we need to use the compound interest formula which is A = P(1 + r/n)^(nt).

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How much would be earned on a $300 deposit earning 4% simple interest for 5 years? ›

Final answer:

The amount earned on a $300 deposit earning 4% simple interest for 5 years is $60.00.

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What is the simple interest on a $16000 loan at 8% for 2 years? ›

What is the simple interest on a $16,000 loan at 8% for 2 years? $16,000 x . 08 x 2, or $16,000 x . 08 = $1,280 x 2 = $2,560.

Determine the interest rate earned on a $1,400 deposit when $1,800 is paid back in one year. (Round the answer to 2 decimal places.) | Homework.Study.com (2024)