Final answer:
The simple interest rate was found to be 8.9% after using the simple interest formula I = PRT, with I being the interest earned, P as the principal amount, R as the rate, and T as the time in years.
Step-by-step explanation:
To calculate the simple interest rate when $1700 earned $75.65 of simple interest in 6 months, we can use the formula for simple interest:
I = PRT
where:
I is the interest earned,
P is the principal amount (initial amount),
R is the rate of interest per period, and
T is the time the money is invested or borrowed for, in years.
In this case, we have:
I = $75.65
P = $1700
T = 6 months = 0.5 years (since 6 months is half a year)
We need to find R (the rate), so we rearrange the formula to solve for R:
R = I / (PT)
R = $75.65 / ($1700 × 0.5)
R = $75.65 / $850
R = 0.089 (or 8.9%)
Therefore, the simple interest rate was 8.9%.