Question

Maria has a savings account that is earning simple interest. If she started with $200 in the account and has earned a total of $8 in interest in two years, what is the rate of the account?

Answer 1

0.02

Step-by-step explanation

Answer 2

The rate of the interest for savings account is: 2%

Explanation:

Simple interest is given by the formula

`I = Prt`

Here

I is the interest,

P is the principal amount

r is the interest rate

and

t is the time period in years

Now, it is given that

P = $200

I = $8

t = 2 years

Putting the values in the formula

`8 = 200 * r * 2\\8 = 400 * r\\r =(8)/(400)\\r = 0.02`

Converting into percentage

r = 2%

Hence,

The rate of the interest for savings account is: 2%