Paddy and Anna each invest $$\(\$ 2000\)$$ for 5 years. Paddy earns simple interest at a rate of $$\(1.25 \%\)$$ per year. Anna earns compound interest at a rate of $$\(r \%\)$$ per year. At the end of 5 years, Paddy's investment is worth the same as Anna's investment. Calculate the value of $$\(r\)$$. $$\[ r=..................................... \]$$
Exam No：0580_s20_qp_23 Year：2020 Question No：16
Answer:
\(1.22\) or \(1.219\) to \(1.22\)
Knowledge points:
E1.16.1 Use given data to solve problems on personal and household finance involving earnings, simple interest and compound interest. (Includes discount, profit and loss.) (Knowledge of compound interest formula is required.)
E1.16.2 Extract data from tables and charts.
Solution:
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