At thrift bank,if you keep $675 in a saing account for 12 years, your money wil earn $486 in interest. What annual simple interest rate does the bank offer?
To find the annual simple interest rate offered by the thrift bank, you can use the formula:
Interest = Principal x Rate x Time
Where:
Interest = $486 (as given)
Principal = $675 (as given)
Time = 12 years (as given)
Let's plug in the given values and solve for the rate:
$486 = $675 x Rate x 12
Divide both sides of the equation by $675 x 12:
Rate = $486 / ($675 x 12)
Rate ≈ 0.08 or 8%
Therefore, the thrift bank offers an annual simple interest rate of 8%.
To find the annual simple interest rate offered by the bank, we can use the formula for simple interest:
Interest = Principal × Rate × Time
Given:
Principal = $675
Interest = $486
Time = 12 years
We need to find the rate.
Rearranging the formula, we get:
Rate = Interest / (Principal × Time)
Substituting the given values, we have:
Rate = $486 / ($675 × 12)
Simplifying,
Rate = $486 / $8100
Dividing both numerator and denominator by 9 to simplify, we get:
Rate = $54 / $900
Now, divide both numerator and denominator by 9 again:
Rate = $6 / $100
Finally, convert it to a percentage by multiplying by 100:
Rate = ($6 / $100) × 100
Simplifying,
Rate = 6%
Therefore, the annual simple interest rate offered by the bank is 6%.
675*12r = 486
Now just solve for r and express as a %