Question

A woman deposited $560 in a bank.a The bank decided to give all its customers 4.5% interest. Calculate how much she received in interest.b The next year she had $720 in the bank and received $27.36 interest. What was the percentageinterest rate?

Answer 1

Given:

Amount = $560

a) interest = 4.5 % = 4.5/100= 0.045 (decimal form)

560 x 0.045 = 25.2

b)

Amount = $720

Interest = $27.36

720 r = 27.36

Where r is the interest rate in decimal form:

r = 27.36 /720

r= 0.038

r = 0.038 x 100 = 3.8 %

Answers:

a) $27.36

b) 3.8 %