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 If $5000 earns $6000 simple interest in 12 years, find the interest rate.

To solve the problem of finding the interest rate, we can use the simple interest formula:

\[
\text{Simple Interest (SI)} = \frac{P \times R \times T}{100}
\]

Where:
- $ P $ is the principal amount (initial amount), which is $5000.
- $ R $ is the interest rate (what we need to find).
- $ T $ is the time in years, which is 12 years.
- SI is the simple interest, which is $6000.

Given:
- $ P = 5000 $ dollars
- $ T = 12 $ years
- $ \text{SI} = 6000 $ dollars

We substitute the values into the formula:

\[
6000 = \frac{5000 \times R \times 12}{100}
\]

Now, solve for $ R $:

\[
6000 = \frac{5000 \times R \times 12}{100}
\]

Multiply both sides by 100 to eliminate the fraction:

\[
600000 = 5000 \times R \times 12
\]

Now, divide both sides by $ 5000 \times 12 $:

\[
R = \frac{600000}{5000 \times 12}
\]

Simplifying:

\[
R = \frac{600000}{60000} = 10\%
\]

So, the interest rate is **10%**.

Would you like more details or have any questions?

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Here are 5 related questions for further practice:
1. If $4000 earns $800 simple interest in 4 years, what is the interest rate?
2. Find the time required for $3000 to earn $900 as simple interest at a rate of 5%.
3. Calculate the simple interest earned by $7000 in 5 years at a rate of 8%.
4. If $2500 is invested at a 12% interest rate, how much interest will it earn in 3 years?
5. How much time will it take for $6000 to double itself at a 6% simple interest rate?

**Tip:** Always ensure the units (e.g., years for time, percentage for interest rate) are consistent when applying formulas.

Learn how to calculate the interest rate when $5000 earns $6000 in 12 years using the simple interest formula. This problem involves basic arithmetic and understanding of simple interest calculations. Suitable for Grades 7-9.

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