Question

Nick invested $1,000 in a savings account. After 4 years, the account had earned a total of $112 simple interest without any additional deposits. What was Nick's interest rate, in percent form, to the nearest tenth?

Answer 1

2.8

Explanation:

The formula for calculating simple interest is:

I = Prt

Where I is the interest earned, P is the principal amount, r is the interest rate per year, and t is the time period in years.

In this case, we know that Nick invested $1,000 and earned $112 in interest over a period of 4 years. We can use this information to calculate the interest rate:

112 = 1000 * r * 4

Simplifying the equation, we get:

r = 112 / (1000 * 4)r = 0.028

Multiplying by 100 to convert to a percentage, we get:r = 2.8%

Therefore, Nick's interest rate was 2.8% to the nearest tenth.