Question

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

Answer 1

Explanation:

The simple interest formula is

I = Prt, where I is the interest earned, P is the initial investment, r is the interest rate in decimal form, and t is the time in years. We have that after 2 years, 9000 has turned into 10440. That means that the total interest earned was 10440 - 9000 = 1440

I = 1440

P = 9000

r = ?

t = 2

Filling in we have

1440 = 9000(r)(2) and

1440 = 18000r so

r = .08

As an interest rate, we multiply this by 100 to get 8%