Question

Steve put $500 into a saving account.At the end of one year, he had earned $30 in interest.What interest rate was the bank paying?

Can you tell me HOW to solve it?

Answer 1

$2.5 a month

Explanation:

30 divided 12 is 2.5. You're dividing it by 12 because they're 12 months in a year.

Answer 2

6%

Explanation:

530=500·(1+1)

53/50= 1+1

50/50+ 3/50= 1+1

i = 3/50= 6/100

6 interest