Beth put $8,000 in a savings account. At the end of a year the account had earned $720 in interest. What was the yearly interest rateon the account?
A. 18.5%
B. 17.5%
C. 10.%
D. 9.0%
To calculate the yearly interest rate, you can use the formula:
Interest = Principal x Rate x Time
In this case, the Principal (P) is $8,000, the Interest (I) is $720, and the Time (T) is 1 year. We need to find the Rate (R).
$720 = $8,000 x R x 1
$720 = $8,000R
R = $720 / $8,000
R = 0.09
Therefore, the yearly interest rate on the account is 9.0%, so the answer is D. 9.0%