Question

Kelly deposited $4,205 in an account for 3.5 years. She earned $662.29 in interest. What interest rate did the bank pay her?

Answer 1

To find the interest rate paid by the bank, we can use the formula for simple interest: Interest = Principal × Rate × Time. In this case, the principal is 4,205, the interest earned is 662.29, and the time is 3.5 years. Therefore, the bank paid Kelly an interest rate of 4.5%.

Step-by-step explanation:

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

Interest = Principal × Rate × Time

In this case, the principal is 4,205, the interest earned is 662.29, and the time is 3.5 years. Substituting these values into the formula, we have:

662.29 = 4,205 × Rate × 3.5

Simplifying the equation, we get:

Rate = 662.29 / (4,205 * 3.5)

Rate = 0.045 (or 4.5%)

Therefore, the bank paid Kelly an interest rate of 4.5%.

Answer 2

r = 4.5%

Step-by-step explanation:

Formula:

I = Prt

r = I/(Pt)

Given:

I = 662.29

P = 4205

t = 3.5

Work:

r = I/(Pt)

r = 662.29/(4205 * 3.5)

r = 662.29/14717.5

r = 0.045

r = 4.5%