Question

you put $100 in an account. the account earns $3 simple interest in 6 months. what is the annual interest rate?

Answer 1

To calculate the annual interest rate, we can use the simple interest formula:

I = P * r * t

Where:

- I is the interest earned

- P is the principal amount

- r is the annual interest rate

- t is the time period in years

In this case, we know that the principal amount is $100, the interest earned is $3, and the time period is 6 months, or 0.5 years. We can plug these values into the formula and solve for r:

3 = 100 * r * 0.5

r = 3 / (100 * 0.5)

r = 0.06, or 6%

Therefore, the annual interest rate is 6%.

I hope this helps!

Answer 2

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

simple interest = (principal x rate x time) / 100

where principal is the initial amount, rate is the annual interest rate, and time is the time period in years.

We know that the principal is $100, the simple interest is $3, and the time period is 6 months, which is half a year.

So, we can plug in these values and solve for the annual interest rate:

$3 = ($100 x rate x 0.5) / 100

$3 = $0.5 x rate

rate = $3 / $0.5

rate = 6

Therefore, the annual interest rate is 6%.