Question

9) Morgan has an investment worth $130,000 dollars after 20 years. If his original

Answer 1

Answer : The interest rate have been 8 %

Step-by-step explanation :

First we have to calculate the simple interest.

As we know that:

Simple interest = Total amount - Principle

Simple interest = $130,000 - $50,000

Simple interest = $80,000

Now we have to calculate the interest rate.

Using simple interest formula:

$S.I=\frac{PRT}{100}$

where,

S.I = simple interest = $80,000

P = principle = $50,000

R = interest rate = ?

T = time = 20 years

Now put all the given values in the above formula, we get:

$\ 80,000=\frac{\ 50,000\times R\times 20years}{100}$

$R=\frac{\ 80,000\times 100}{\ 50,000\times 20years}$

$R=8\%$

Therefore, the interest rate have been 8 %

Answer 2

Answer:

.054 interest rate (not it percentage)

Step-by-step explanation:

$A=Pe^{rt}$

A = future value: $130,000

P = principal (initial) value: $50,000

r = interest rate: unknown value

t = time: 20 years

$130,000=50,000e^{r*20}$