Question

Brandy had $7,216.18 in a savings account with simple interest. She had opened the account with $7,006 exactly 1 year earlier. What was the interest rate?

Use the formula i = prt, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.

Answer 1

The interest rate is 3%

Explanation:

You can find this using the equation 7,216.18 = 7,006 (r) (1 year)

1) divide 7217.18 by 7006 which equals 1.03

2) you will get 1.03 = 1, so you can multiply the original value by 1.03 to get the next value in one year

3) you can subtract 1.03 by 1 to get the yearly interest rate