Question

2.

You invest $8,000 into a bank account with simple interest. 10 years later, the account has earned
$3,000 in interest.
a) What interest rate did the bank give you? (Make sure your answer is a percent)

Answer 1

Explanation:

Use the simple interest formula, P * r * t = I, to solve. P is the initial investment, r is the rate in decimal form, t is the time in years, and I is the interest earned. Filling in what we have:

8000(r)(10) = 3000 and

80000r = 3000 so

r = .0375 Multiply by 100 to get the percent of 3.75%