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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