Question

Gabriel invests money in an account paying simple interest. No money is added or removed from the investment. To find the balance after a year, he multiplies his current balance by 1.066. What percent simple interest does the account earn per year? PLEASE NEED ANSWER QUICKLY

Answer 1

6.6%

Explanation:

1-1.066=0.066=6.6%

Answer 2

6.6%

Explanation:

To find the percent simple interest the account earns per year, we can use the following formula:

`\sf \textsf{Interest rate} = \frac{\textsf{ Final balance - initial balance}}{\textsf{initial balance $*$ time}} * 100\%`

In this case,

The final balance is 1.066 times the initial balance, and the time is 1 year.

So, we can substitute in these values to get:

`\sf \textsf{Interest rate} = \frac{ 1.066 * \textsf{ intial balance - initial balance}}{\textsf{initial balance} * 1 }* 100\%`

`\sf \textsf{Interest rate} = \frac{ 0.066 \textsf{ initial balance}}{ 1 \textsf{ initial balance}} * 100\%`

`\sf \textsf{Interest rate} = 0.066 * 100\%`

`\sf \textsf{Interest rate} = 6.6\%`

Therefore, the account earns 6.6% simple interest per year.