Question

Mika opened a bank account that earns simple interest with an initial deposit of 2200. She made no other transactions throughout the year. At the end of the year, Mika had 2260.5. What was the interest rate?

Answer 1

The interest rate is approximately 2.75%.

Step-by-step explanation:

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

Interest = Principal × Rate × Time

Given that the initial deposit (Principal) is $2200, and at the end of the year, Mika had $2260.5, we can substitute these values into the formula:

$60.5 = $2200 × Rate × 1

Now we can solve for the rate:

Rate = $60.5 / ($2200 × 1)

Rate ≈ 0.0275 or 2.75%