Question

Julio invested $2,000 in a simple interest account for 3 years.She has earned $150 interested by the end.What was the simple interest rate of the account?

Answer 1

Answer: $2,150.00 = 2.5%
(I = A - P = $150.00)

Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 2.5%/100 = 0.025 per year.

Solving our equation:
A = 2000(1 + (0.025 × 3)) = 2150
A = $2,150.00

The total amount accrued, principal plus interest, from simple interest on a principal of $2,000.00 at a rate of 2.5% per year for 3 years is $2,150.00.