Question

a student has $1500 to deposit in a savings account. what is the lowest rate that would allow the student to earn $95 in simple interest in a year?

Answer 1

6.3%

Explanation:

A student has $1,500 to deposit in a savings account.

Interest = Principal × rate of interest

Let the rate of interest be x%

95.00 = 1,500 × (x/100)

95.00 = 15x

x =
`(95)/(15)`

x = 6.33%

The lowest interest rate is 6.3% in a year.

Answer 2

rate = interest / principal

rate = 95/ 1500 = 0.0633333

rate = 6.33%