# algebra interest word problem

posted by Jordan

Erin Grabish recevied \$2,000 for speaking at a financial planning seminar. Erin invested the money in a certificate of deposit for 2 years. When she redeemed the certificate of deposit, she received \$2166. What simple interest rate did Erin receive on this certificate of deposit?

1. Reiny

this problem has the same structure as the one I answered for you 4 minutes ago.
The only difference is that one has to conclude that the amount of interest is \$166

let me know what rate you got.

2. Jordan

i don't know how to work it. didn't work out.

3. Reiny

Just like before
R = I/PT
= 166/(2000x2)
= 166/4000
= .0415
= 4.15%

4. Jordan

its \$2166 NOT \$166

5. Reiny

She deposited 2000 and got back 2166

how much did she make ?
Isn't that the interest ?

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