Question

Saccoro invested $3800 for 3 1/2 years. She earned $983.25 in simple interest. What was the annual interest rate, to the nearest hundredth of a percent ? A. 0.74% B. 5.35% C. 7.39% D. 13.53%

Answer 1

The formula to find the rate of simple interest is:

`r = (1/t)(A/P - 1)`
Let's plug in the values...

`r = (1/3.5)((4783.25/3800) - 1) = 0.07392857`

`r = 0.07392857`
Let's convert that to a percentage...

`R = 0.07392857 * 100 = 7.3929`

The answer would be C!
Have a nice day! :)