Final answer:
To answer the student's question, the rate of simple interest needed for an investment of $2738.03 to grow to $2920.88 in 3.28 years is 2.02%.
Step-by-step explanation:
A student asks at what rate of simple interest would it take 3.28 years for an investment of $2738.03 to grow to $2920.88. To calculate the rate of simple interest, we use the formula I = PRT, where I is the interest earned, P is the principal amount, R is the rate of interest, and T is the time in years.
First, we need to find the interest earned by subtracting the original amount from the final amount:
I = $2920.88 - $2738.03 = $182.85
Next, we input the known values into the formula and solve for R:
$182.85 = $2738.03 * R * 3.28
R = $182.85 / ($2738.03 * 3.28)
R = 0.0202 or 2.02%
Therefore, the rate of simple interest needed is 2.02%.