Question

Determine the simple interest rate at which $1,350 will grow to

$1,400 in the 3 months. Round your answers to the nearest tenth of
percent.

Answer 1

To determine the simple interest rate, you can use the formula: Simple Interest = Principal (P) x Rate (R) x Time (T). In this case, we know that the principal (P) is $1,350, and the amount (A) after 3 months is $1,400. To find the rate (R), we need to rearrange the formula to solve for R. The simple interest rate at which $1,350 will grow to $1,400 in 3 months is approximately 7.4%.

Step-by-step explanation:

To determine the simple interest rate, you can use the formula:

Simple Interest = Principal (P) x Rate (R) x Time (T)

In this case, we know that the principal (P) is $1,350, and the amount (A) after 3 months is $1,400. To find the rate (R), we need to rearrange the formula to solve for R:

R = (A - P) / (P x T)

Substituting the given values:

R = (1400 - 1350) / (1350 x (3/12))

R ≈ 0.0741, which is approximately 7.4%.