Find the interest rate that generated $250 in interest for an investment of $3500 after 18 months

The rate of interest for the investment is 4.7%

Step-by-step explanation:

Given as :

The interest amount for investment = I = $250

The investment amount = p = $3500

The time period for investment = 18 months = 1.5 years

Let The rate of interest applied = r%

Now, From Compound Interest

Amount = Principal ×

∵ Interest = Amount - Principal

So, I = A - p

Or, A = I + p

Or, A = $250 + $3500

i.e A = $3750

∴ A = p ×

Or, $3750 = $3500 ×

Or, =  

Or, 1.071428 =   =

Or, 1.047069 =

Or, 1.047069 - 1 =

Or, 0.047069 =  

∴ r = 0.047069 × 100

i.e r = 4.7069

So, The rate of interest = r = 4.7%

Hence, The rate of interest for the investment is 4.7% Answer

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step-by-step explanation:

step-by-step explanation: