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Marie has a savings account that is earing simple she started with $200 in the account and has earned a total of $8 in interset in two years,what is the rate of the account​?

User Mjgirl
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1 Answer

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Final answer:

To calculate the interest rate for Marie's account, we use the formula I = P × r × t. With $8 interest over 2 years from a $200 initial deposit, we find that the rate is 2% per annum.

Step-by-step explanation:

To determine the interest rate for Marie's savings account, we use the simple interest formula, which is given by I = P × r × t, where I is the interest earned, P is the principal amount (initial amount of money), r is the annual interest rate, and t is the time in years the money is invested or borrowed for.

In Marie's case, she has earned $8 in interest over 2 years from an initial deposit of $200. Substituting the known values into the formula:
I = P × r × t
$8 = $200 × r × 2
We can solve for r by dividing both sides of the equation by $200 × 2.

r = $8 / ($200 × 2)
r = $8 / $400
r = 0.02

So, the annual interest rate is 0.02, or when expressed as a percentage, 2%.

User Matthew Thurston
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