My Math Forum An investor has applied the amount of $500.00  User Name Remember Me? Password  Algebra Pre-Algebra and Basic Algebra Math Forum  February 4th, 2014, 06:21 AM #1 Newbie Joined: Jan 2014 Posts: 25 Thanks: 0 An investor has applied the amount of$ 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%
 February 4th, 2014, 01:13 PM #2 Math Team   Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,597 Thanks: 1038 Re: An investor has applied the amount of $500.00 560 / 500 - 1 = 1.12 - 1 = .12 ; .12 * 2 = .24 = 24% Sure something wrong with your problem...  February 4th, 2014, 05:24 PM #3 Senior Member Joined: Jun 2011 Posts: 164 Thanks: 0 Re: An investor has applied the amount of$ 500.00 I think he meant 560-500=60 60/6=10 $/month 10/500=.02 = 2% interest I am assuming this is simple, but not compound interest.  February 22nd, 2014, 06:44 AM #4 Math Team Joined: Sep 2007 Posts: 2,409 Thanks: 6 Re: An investor has applied the amount of$ 500.00 Yes, $500 increased by$60 which is an increase of $\frac{60}{500}= 0.12$ 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.
February 22nd, 2014, 09:38 AM   #5
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Re: An investor has applied the amount of $500.00 Quote:  Originally Posted by HallsofIvy 12% in 6 months is 24% annual interest. If not simple: 24% APR compounded semiannually...or 25.44% effective...  February 22nd, 2014, 06:24 PM #6 Math Team Joined: Sep 2007 Posts: 2,409 Thanks: 6 Re: An investor has applied the amount of$ 500.00 How do you decide that? The OP said we were to use simple interest.
 February 22nd, 2014, 07:14 PM #7 Math Team   Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,597 Thanks: 1038 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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