Question

Julio invested $2,000 in a simple interest account for 3 years. At the end of the 3 years, she had earned $150 in interest. What was the simple interest rate of the account?

Answer 1

r = 2.5%

Explanation:

The formula for simple interest account is

i = I · r · n / 100

where i - is interest, I - investment, r -interest rate and n- number of years

according to that

r = i · 100/ I · n = 150 · 100/ 2000 · 3 = 5/2 = 2.5%

r = 2.5%

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