Question

After 1 year, $70,060 deposited in a savings account with simple interest had grown to a total of $77,136.06. What was the interest rate?

Answer 1

10.1%

Explanation:

Interest = PRT/100

Interest = 77136.06 - 70060 = 7076.06

Interest = PRT/100

7076.06 = [(70060) × R × 1] / 100

7076.06 = 70060R/100

Cross multiply

(7076.06 × 100) = 70060R

707606 = 70060R

R = 707606/70060

R = 10.1%