Free Practice Question
PS · Problem Solving
705-805
percent
Bob invested one half of his savings in a bond that paid simple interest for 2 years and received $550 as interest. He invested the remaining in a bond that paid compound interest (compounded annually) for the same 2 years at the same rate of interest and received $605 as interest. What was the annual rate of interest?
Answer Choices
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5%
B
10%
C
12%
D
15%
E
20%
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Explanation
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Difficulty
705-805
Type
PS
Category