Answer:
11.11% (nearest hundredth)
Explanation:
Simple interest formula
A = P(1 + rt)
where:
- A = final amount
- P = principal
- r = interest rate (in decimal form)
- t = time (in years)
Given:
- A = $3500
- P = $2800
- t = 2 years 3 months = 2.25 years
Substitute given values into the formula and solve for r:
⇒ 3500 = 2800(1 + 2.25r)
⇒ 3500 = 2800 + 6300r
⇒ 700 = 6300r
⇒ r = 1/9
Convert the interest rate into a percentage:
⇒ r × 100% = 1/9 × 100% = 11.11% (nearest hundredth)