Question

I need to know how to solve these simple interest word problems step by step.

1. What is the new balance of your account after 8 months if you earn 2.7% on your balance of $13,132?
(by the way, I’ve tried .66 and .67 for time and it doesn’t give us our answer apparently :/)

2. Last Year you earned $273.47 in interest for your online savings account. If your starting balance was $8,546, what was your interest rate?

Answer 1

$236.38

3.20%

Explanation:

Simple interest = PNR/100 where P = Principal = 13132/-

N = 8 months = 8/12 years and r = 2.7%

Hence simple interest = 13132 (8/12)(2.7/100)

= 236.376

= 236.38 dollars

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2) On the same notation, here PNR/100 = 8546(1)(R)/100=273.47

Solving

R = 273.47(100)/8546 = 3.19999

= 3.20% apprxy.

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