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Jamie invests £6000 at a simple interest rate of r% each year - OCR - GCSE Maths - Question 8 - 2021 - Paper 1

Question 8

Jamie invests £6000 at a simple interest rate of r% each year. After 6 years the value of their investment is £7170. Find the value of r.

Worked Solution & Example Answer:Jamie invests £6000 at a simple interest rate of r% each year - OCR - GCSE Maths - Question 8 - 2021 - Paper 1

Step 1

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Answer

To find the total interest earned on the investment over 6 years, we can subtract the initial investment from the final amount:

$\text{Interest} = \text{Final Amount} - \text{Initial Investment}$

$\text{Interest} = £7170 - £6000 = £1170$

Step 2

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Answer

The formula for simple interest is given by:

$I = P \times r \times t$

where:

Substituting the known values:

$1170 = 6000 \times \frac{r}{100} \times 6$

Step 3

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Answer

We can simplify the equation:

$1170 = 36000 \times \frac{r}{100}$

Multiplying both sides by 100:

$117000 = 36000r$

Now, divide both sides by 36000:

$r = \frac{117000}{36000} = 3.25$

Thus, the value of r is:

$r = 3.25\%$

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