Question

You put $500 in an account. The

account earns $55 simple interest in 5
years. What is the annual interest
rate?

HURRY HELP

Answer 1

2.2% per year

Step-by-step explanation:

Problem:

You deposit $500 into a bank account and received $55 simple interest after 5 years. What had been the interest rate?

Result:

The interest rate was 2.2% per year.

Step-by-step explanation:

Find interest rate by using the formula I = P*i*t , where I is interest, P is total principal, i is rate of interest per year, and t is total time in years. In this example I = $55, P = $500 and t = 5 years, so

i = 55/500*5

i=0.022 = 2.2% per year

Hope it helps XD