Question

After 3 months, $3,900 deposited in a savings account with simple interest had grown to a total of $4,017. What was the interest rate?

Answer 1

12%

Explanation:

First, converting R percent to r a decimal

r = R/100 = 12%/100 = 0.12 per year,

then, solving our equation

I = 3900 × 0.12 × 0.25 = 117

I = $ 117.00

The simple interest accumulated

on a principal of $ 3,900.00

at a rate of 12% per year

for 0.25 years is $ 117.00.