Multiple choice general knowledge math & puzzles

What simple interest rate will Robert need to secure to make \$2,500 in interest on a \$10,000 principal over 5 years?

  1. 4 %

  2. 5 %

  3. 6 %

  4. 7%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Using simple interest formula: I = P×R×T. We have I = 2500, P = 10000, T = 5. Substituting: 2500 = 10000 × R × 5, so 2500 = 50000 × R, therefore R = 2500 ÷ 50000 = 0.05 = 5%. Robert needs a 5% simple interest rate to earn \$2,500 on his \$10,000 principal over 5 years.

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