Question

Amanda puts 15000 in a savings account. after 5 years, she had 1833 in the account. what rate of interest did she earn ? use formula a=pe rt, where a is the ending amount, p is the principal(initial amount) r is the interest rate, and t is time.

Answer 1

To find the interest rate Amanda earned, we can use the formula a = p(1 + rt), where a is the ending amount, p is the principal, r is the interest rate, and t is the time in years. By plugging in the given values, we can find that Amanda earned an interest rate of approximately 2.22%.

Step-by-step explanation:

To find the interest rate, we can use the formula a = p(1 + rt), where a is the ending amount, p is the principal (initial amount), r is the interest rate, and t is the time in years. In this case, Amanda puts $15,000 in a savings account and after 5 years, she has $1,833 in the account. So, we have:

$1,833 = $15,000(1 + r imes 5)

To solve for r, we can divide both sides of the equation by $15,000 and subtract 1 from both sides, giving us:

r = ($1,833/$15,000) - 1

Simplifying this equation, we find that r ≈ 0.0222 or 2.22%. Therefore, Amanda earned an interest rate of approximately 2.22%.