Question

A bank deposit paying simple interest grew from an initial amount of $1400 to $1470 in 6 months. Find the interest rate. %/year Need Help? Read it

Answer 1

To find the interest rate, use the formula for simple interest Interest = Principal x Rate x Time. Then, substitute the given values into the formula and solve for the rate.

Step-by-step explanation:

To find the interest rate, we can use the formula for simple interest:

Interest = Principal x Rate x Time

In this case, the principal is $1400, the interest is $70 ($1470 - $1400), and the time is 6 months (or 0.5 years).

Substituting these values into the formula, we get:

$70 = $1400 x Rate x 0.5

Dividing both sides of the equation by $1400 x 0.5, we find that the interest rate is:

Rate = $70 / ($1400 x 0.5) = 0.1 or 10%

Answer 2

To find the interest rate, we can use the formula for simple interest: Interest = Principal × Rate × Time. In this case, the principal amount is $1400, the interest is $70 (1470 - 1400), and the time is 6 months. By substituting these values into the formula and solving for the rate, we find that the interest rate is 10% per year.

Step-by-step explanation:

To find the interest rate, we can use the formula for simple interest:

Interest = Principal × Rate × Time

In this case, the principal amount is $1400, the interest is $70 (1470 - 1400), and the time is 6 months. We can substitute these values into the formula and solve for the rate:

$70 = $1400 × Rate × (6/12)

Dividing both sides of the equation by $1400 and (6/12), we get:

Rate = $70 / ($1400 × (6/12))

Simplifying further:

Rate = $70 / ($1400 × 0.5)

Rate = $70 / $700 = 0.1

The interest rate is 0.1 or 10% per year.