Question

harry purchased a 600$ savings bond if he has 1200 in total in the bank at the end of 10 years what was the simple interest rate

Answer 1

R = 10%/year

Equation:

r = (1/t)(A/P - 1)

Solving our equation:

r = (1/10)((1200/600) - 1) = 0.1

r = 0.1

Converting r decimal to R a percentage

R = 0.1 * 100 = 10%/year

The interest rate required to get a total amount, principal plus interest, of $1,200.00 from simple interest on a principal of $600.00 over 10 years is 10% per year.

Explanation:

so he has 600 $ saving then if he has 1,200 total in the bank