Question

Lily deposited $17,500 into a banking account that earns simple interest each year after 2 years he earned $2,975 in interest if no money was deposited into or withdrawn from the account what was the annual interest rate

Answer 1

This one is a little bit tricky and in order to solve this you need. To have a calculator with you

First you set up the equation (hopefully you remember the formula)

17500(1+r)^2=20475 (17500+2975)

Then you divide both side by 17500

You get (1+r)^2=1.17

And finally you solve this equation ( I assume that you know to to do it since you are in at least algebra 2 )

Then you get -10+3squareroot 13 all divided by 10 as the answer.

If you have any question please let me know