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Jennifer opened a savings account with $750. She earned $75 in interest after 2 years. What is the interest rate?

1 Answer

10 votes

Answer:

5%

Explanation:

Solving our equation

r = 75 / ( 750 × 2 ) = 0.05

r = 0.05

converting r decimal to a percentage

R = 0.05 * 100 = 5%/year

The interest rate required to

accumulate simple interest of $ 75.00

from a principal of $ 750.00

over 2 years is 5% per year.

User Glorin Oakenfoot
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