Question

Megan has earned a total of 67.50 in interest on her savings account. It is the third year she has had her 900.00 deposit in her savings account. What is the interset rate on this account? List your answer as a percent to the nearest tenth

Answer 1

9514 1404 393

Answer:

2.5%

Explanation:

Simple interest is computed using the formula ...

I = Prt . . . . for principal P invested at rate r for t years

Using the given values, we can solve for r ...

67.50 = 900r·3

r = 67.50/2700 = 0.025 = 2.5%

Megan's account earned 2.5% interest.