Question

Shaq invested $900 into a savings account that pays annual simple interest. At the end of 9 years, he earned $461.70 in interest. What is the interest rate on the savings account? Round to the nearest tenth of a percent.​

Answer 1

Interest = $900 * x * 9 years with "x" = interest rate

If interest = 461.70 then

461.70 = 900 * 9 * x

x = 461.70 / 8,100

x = interest rate = .057 = 5.7%

Double Check

Interest rate of 5.7 per cent equals

.057 * 900 = $51.30 per year

Nine Years = 9 * 51.30 equals 461.70

So, it's correct!!!

Explanation: