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What is the simple interest rate if $149.24 in interest is earned on a deposit of $1197.81 in one year?

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Final answer:

To find the simple interest rate, we can use the formula: I = PRT, where I is the interest earned, P is the principal amount (deposit), R is the interest rate, and T is the time in years. In this case, the simple interest rate is approximately 12.47%.

Step-by-step explanation:

To find the simple interest rate, we can use the formula:

I = PRT, where I is the interest earned, P is the principal amount (deposit), R is the interest rate, and T is the time in years. In this case, I = $149.24, P = $1197.81, and T = 1.

Rearranging the formula, we can solve for R: R = I / (PT).

Substituting the given values, we get R = $149.24 / ($1197.81 * 1) = 0.1247. Converting this to a percentage, the simple interest rate is approximately 12.47%.

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