Question

If George put $600 in a savings account at a simple interest rate for each year. What was his interest rate, r, if after 3 years he had a total of 708$

Answer 1

6%

Explanation:

The multiplier on George's money is ...

$708/$600 = 1.18

This value is ...

1 + rt = 1.18 . . . . . for t = 3

3r = 0.18 . . . . . . subtract 1; next divide by 3

r = 0.06 = 6%

The simple interest rate on George's account is 6%.