Question

Raul deposited $3000 into a bank account that earned simple interest each year. After 3.5 years, he had earned $262.50 in interest.

If no money was deposited into or withdrawn from the account, what was the annual interest rate?

Answer 1

simple interest earn
i = Prt

r =i/(Pt)
r = 262.50/(3000 * 3.5)
r = 262.5 / 10,500
r = 0.025

0.025 = 25/1000 = 2.5%

answer: annual interest rate is 2.5%

Answer 2

2.5% year

Explanation:

Simple interest are generally practiced for short period loans, usually for less than one year. Simple interest have linear behavior.

Raul

`I=Prn\Rightarrow 262.5=3000*r*3(1)/(2)\Rightarrow (262.5)/(3000)=(3000)/(3000)*r*3(1)/(2)\Rightarrow (7)/(80)=3(1)/(2)r\Rightarrow r=(7)/(80):3(1)/(2)\Rightarrow r=(1)/(40)\Rightarrow r=0.025 \: or\:2.5\%`