165 Views

**What annual simple interest rate will allow Hosea Soli to increase his initial investment of $80,000 to $100,000 in five years?**

( Use the formula I = prt and substitute known values to find I.)

A)6%

B)5%

C)6.25%

D)5.5%

**Answer**

Using the formula I=prt I will use $80,000 for p or principle.

I will use 5% for r or rate.

(this needs to be converted to a decimal so move the decimal point two places to the left, you can't multiply using percents) and 5 years for t or time.

80,000*0.05*5=20,000.00.

He is getting $20,000 in interest.

So $80,000 + $20,000 = $100,00.

Therefore, the answer is B.

To see more answers head over to College Study Guides

##### Virtual Teaching Assistant: Colleen R.

##### Question Level: Basic

##### Karma: Free

##### Upload Date: 5/31/2017

This 39 words question was answered by Colleen R. on StudySoup on 5/31/2017. The question contains content related to Business Since its upload, it has received 165 views.