Answer: The rate was 11.5%.
I = $3,772, P = $8,200, r = ?, t = 4 years
We will use the simple interest formula to find the rate.
Write the formula. I = Prt
Substitute the given information. 3,772 = 8,200r(4)
Multiply. 3,772 = 32,800r
Divide.
3,77232,800=32,800r32,800(6.4.4)
Simplify. 0.115 = r
Write as a percent. 11.5% = r
Check your answer. Is 11.5% a reasonable rate if $3,772 was earned in 4 years?
3,772=?8,200(0.115)(4)(6.4.5)
3,772=3,772✓(6.4.6)
Write a complete sentence that answers the question. The rate was 11.5%.