Question

Help!!!! 10 points Taking a test Micah invested $3450 in an account paying simple interest. At the end of 6

years, the value of his account was $3967.50. What was the interest rate? *
O a. 1.5%
O b. 2.0%
O c. 2.5%
O d. 15%

Answer 1

The answer is C.

Explanation:

First, you have to find the interest amount after 6 years. In order to do this, you have to subtract :

`3967.50 - 3450 = 517.50`

Next, you have to apply simple interest formula, I = (P×R×T)/100 where I repesents interest amount, P is priciple, R is interest rate and T is number of years :

`i = (prt)/(100)`

`let \: i = 517.50,p = 3450,t = 6`

`517.50 = (3450 * r * 6)/(100)`

`517.50 = (20700r)/(100)`

`51750 = 20700r`

`(51750)/(20700) = r`

`r = 2.5\%`