Question

Newton currently has a balance of $1,716.18 in an account he has held for 29 years. He opened the account with an initial deposit of $784. What is the simple interest rate on the account?

Answer 1

The formula is
A=p (1+rt)
A future value 1716.18
P principle 784
R interest rate?
T time 29
Solve the formula for r
R=[(A/p)-1]÷t
R=((1,716.18÷784)−1)÷29
R=0.041×100
R=4.1%