Question

Jacob invested $300 in a savings account and earned $81 in interest at the end of 9 years. What was the interest rate?

A.
3%


B.
3.5%


C.
4%


D.
4.5%

Answer 1

r = (1/t)(A/P - 1)r = (1/9)((300/81) - 1)Reduce the expression by cancelling the common factors.r=(1/9)(100/27−1)Combine 100/27 and −1 using a common denominator.r=(1/9)(100−1⋅27/27)Simplify the numerator.r=(1/9)(73/27)r = 0.30041152converting r decimal to a percentageR = 0.30041152 * 100 = 30.0412%/yearA. 3%
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