Question

Josue deposited $1,700 into a savings account for 4 years. If he earned

$748 in interest, what was the rate of the account? (You may use the
formula 1 = prt to solve.)

Answer 1

0.11

Explanation:

Simple interest can be calculated using the expression

I= PRT

where I= interest= $748

P= principal= $1,700

T= time= 4 years

R= rate=?

Then substitute the values into expresion above

748= 1700× R×4

R= (748)/(1700×4)

R= 748/6800

R= 0.11

Hence, the rate of the account is 0.11