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February 4th, 2014, 06:21 AM   #1
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An investor has applied the amount of $ 500.00

buenas afternoon staff;

An investor has applied the amount of $ 500.00 in an investment fund that operates in the regime of simple interest. After 6 months the investor was found that the amount of R $ 560.00. What rate of interest of this fund?

a) 0.1%
b) 0.5%
c) 1%
d) 2%
e) 3%
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February 4th, 2014, 01:13 PM   #2
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Re: An investor has applied the amount of $ 500.00

560 / 500 - 1 = 1.12 - 1 = .12 ; .12 * 2 = .24 = 24%

Sure something wrong with your problem...
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February 4th, 2014, 05:24 PM   #3
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Re: An investor has applied the amount of $ 500.00

I think he meant

560-500=60

60/6=10 $/month

10/500=.02 = 2% interest

I am assuming this is simple, but not compound interest.
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February 22nd, 2014, 06:44 AM   #4
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Re: An investor has applied the amount of $ 500.00

Yes, $500 increased by $60 which is an increase of or 12% in six months. "Rate of interest" should be given annually not for six months or one month. 12% in 6 months is 24% annual interest.
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February 22nd, 2014, 09:38 AM   #5
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Re: An investor has applied the amount of $ 500.00

Quote:
Originally Posted by HallsofIvy
12% in 6 months is 24% annual interest.
If not simple: 24% APR compounded semiannually...or 25.44% effective...
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February 22nd, 2014, 06:24 PM   #6
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Re: An investor has applied the amount of $ 500.00

How do you decide that? The OP said we were to use simple interest.
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February 22nd, 2014, 07:14 PM   #7
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Re: An investor has applied the amount of $ 500.00

Didn't decide nuttin!
Trying to let the OP know that this WOULD BE the case IF.
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