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Sydney deposits $3,875 into our savings account she leaves that money untouched for three years after three years her account has earned $651 in interest what rate at which has her money growing

User AnD
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1 Answer

5 votes

Answer: 5.6%

Explanation:

Formula for simple interest: Interest =
(P* R * T)/(100), where P= Principal , R = Rate of interest , T= Time.

Given: P= $3,875, T= 3 years , Interest = $651

Substitute all values in formula, we get


651=(3875* R*3)/(100)\\\\\Rightarrow\ R= (65100)/(3875*3)\\\\\Rightarrow\ R=5.6\%

Hence, the required rate = 5.6%

User Helenus The Seer
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