Question

After 2 years, Deion earned $270 in simple interest from a CD into which he initially deposited $6000. What was the annual interest rate of the CD? A. 6.5% B. 9.75% C. 2.25% D. 3.25%

Answer 1

I=prt
When I want to find the rate
r=I/pt so
R=(270/6000*2)*100==2.25%

Answer 2

C. 2.25%

Explanation:

Given : Simple interest = $270

Principal = $6000

time = 2 years

To F ind : Annual interest rate (R)

Solution :

using simple interest formula i.e.

`S.I. = P*R*T`

where R is in decimals

⇒
`270 = 6000*R*2`

⇒
`(270)/(6000*2) = R`

⇒0.0225 = R(IN DECIMAL)

Multiply by 100 to convert it in percentage

⇒R = 2.25%

Thus the annual interest rate of the CD is 2.25%