Question

Kate opens a savings account with a deposit of $1250. After 2 years, she has

receives $112.50 in interest. What is the annual interest rate?

Answer 1

4.5%

Explanation:

Simple interest:

I = Prt

112.5 = 1250(r)(2)

1250r = 56.25

r = 0.045 = 4.5%

Answer: 4.5%