Question

Jaden deposited $9000 in a savings account with a simple interest. two years later, the account held $10,440. what is the interest rate?

Answer 1

The interest rate is 8%

Explanation:

Given:

amount Jaden Deposited = $9000

Time period = 2 years

Total amount after 2 years = 10440

To Find:

The interest rate = ?

Solution:

Let the interest rate be R

The interest rate Jaden got after 2 years = 10440 - 9000

So the interest amount for 2 years = 1440

Now we know that,

`\text { simple Interest }=\frac{\text { Principal } * \text {rate of interest } * \text { number of years }}{100}`

Substituting the known values ,

`1440 =( 9000 * R * 2)/(100)`

`1440 =( 18000 * R )/(100)`

`1440 = 180 * R`

`R = (1440)/(180)`

R = 8