Question

Shaq deposited $77 into a savings account that pays annual simple interest. AT the end of the 6 years , he earned $24.02 in interest. WHat is the interest rate on the savings account? ROund to the nearest 10th of a percent. Pease help me

Answer 1

Interest rate on the savings account=5.2%

Explanation:

The simple interest amount is calculated using the formula below;

Simple interest amount=Principal×rate×time

where;

Principal=Initial deposit

rate=interest rate on the deposit

Time=number of years the money was deposited

In our case;

Principal=$77

Interest rate=r

Time=6 years

Simple interest amount=$24.02

Replacing;

$24.02=77×r×6

462 r=24.02

r=24.02/462

r=0.05199

In percentage=(0.05199×100)=5.199

Nearest 10th of a percentage=(10/100)=0.1

5.199 to the nearest 10th of a percent=5.2%

Interest rate on the savings account=5.2%