Question

camille invested $3000 into an account that earned annual simple interest. she made no deposits or withdrawals, and after 9 yrs, she had earned $1755 in interest. what was the interest rate of the savings account?​

Answer 1

6.5 %

Explanation:

The simple interest formula is

I = Prt

Data:

I = $1755

P = $3000

t = 9 yr

Calculation:

1755 = 3000 × r × 9

1755 = 27 000 r

Divide each side by 27 000

r = 1755/27 000 = 0.065 = 6.5 % APR

The annual percentage rate was 6.5 %.