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At what simple annual interest rate must $2,500 be invested if it is

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NandishSS
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At what simple annual interest rate must $2,500 be invested if it is [#permalink] New post   29 Oct 2018, 06:39
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At what simple annual interest rate must $2,500 be invested if it is to earn $225 in interest in one year?

(A) 6%
(B) 7%
(C) 8%
(D) 9%
(E) 10%
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D
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Abhishek009
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Re: At what simple annual interest rate must $2,500 be invested if it is [#permalink] New post   29 Oct 2018, 08:38
NandishSS wrote:
At what simple annual interest rate must $2,500 be invested if it is to earn $225 in interest in one year?

A)6%
B)7%
C)8%
D)9%
E)10%


\(225 = \frac{2500*1*r}{100}\)

So, \(225 = 25r\)

Thus, \(r = 9\)% ; Answer must be (D)
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BrentGMATPrepNow
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Re: At what simple annual interest rate must $2,500 be invested if it is [#permalink] New post   06 Apr 2020, 09:52
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NandishSS wrote:
At what simple annual interest rate must $2,500 be invested if it is to earn $225 in interest in one year?

(A) 6%
(B) 7%
(C) 8%
(D) 9%
(E) 10%


Let x = the PERCENT annual interest rate

So, we want: x percent of $2,500 = 225
Rewrite as: x/100 of $2,500 = 225
In other words: (x/100)(2,500) = 225
Simplify: 2500x/100 = 225
Simplify again: 25x = 225
Solve: x = 225/25 = 9

Answer: D

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Brent
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Re: At what simple annual interest rate must $2,500 be invested if it is [#permalink] New post   08 Aug 2020, 10:02
NandishSS wrote:
At what simple annual interest rate must $2,500 be invested if it is to earn $225 in interest in one year?

(A) 6%
(B) 7%
(C) 8%
(D) 9%
(E) 10%



225=2500*r*1/100
r=9%

D
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Re: At what simple annual interest rate must $2,500 be invested if it is [#permalink] New post   07 Nov 2020, 21:53
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Everyone knows that SI = PRT/100

Just an alternative thought process for this sum.

10% of 2500 is 250. We want an Interest of 225. 1% of 250 = 25 and 250 - 25 = 225

So the required percentage is 10 - 1 = 9%


Option D

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At what simple annual interest rate must $2,500 be invested if it is [#permalink] New post   21 Jan 2021, 19:06
NandishSS wrote:
At what simple annual interest rate must $2,500 be invested if it is to earn $225 in interest in one year?

(A) 6%
(B) 7%
(C) 8%
(D) 9%
(E) 10%


Two intuitive approaches:

1) 25 is 1% of 2500, so \(\frac{225}{25}\) = 9% of 2500

2) What fraction of 2500 does 225 represents? answer is \(\frac{225}{2500}\), but we want to know the percentage of 2500 that 225 represents, so we need to multiply the fraction by 100 -> \(\frac{225}{2500}*100\) = \(\frac{225}{25}\) = 9%
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At what simple annual interest rate must $2,500 be invested if it is [#permalink]
21 Jan 2021, 19:06
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