Hassan deposited $7,500 into a bank account. At the end of 3 years, the account had earned $900 in simple interest. What rate of interest did the account earn per year?
uh...4%?
900/3 = 300/yr
300/7500 = .04
Or
PRT = I
R = I/PT
R = 900/(7500 * 3)
R = .04 = 4%
To find the rate of interest earned per year, we can use the formula for simple interest:
Simple Interest = (Principal * Rate * Time)
Let's rearrange the formula to solve for the rate:
Rate = (Simple Interest) / (Principal * Time)
Given:
Principal = $7,500
Simple Interest = $900
Time = 3 years
Substituting these values into the formula, we get:
Rate = 900 / (7,500 * 3)
Rate = 900 / 22,500
Rate = 0.04
Therefore, the rate of interest the account earned per year is 0.04, or 4%.
To find the rate of interest earned per year, we can use the formula for simple interest:
Simple Interest = (Principal * Rate * Time)
Given:
Principal = $7,500
Simple Interest = $900
Time = 3 years
We can rearrange the formula to solve for the rate:
Rate = Simple Interest / (Principal * Time)
Now, we can substitute the given values into the formula to calculate the rate:
Rate = $900 / ($7,500 * 3)
First, multiply $7,500 by 3:
Rate = $900 / $22,500
Then, divide $900 by $22,500:
Rate ≈ 0.04
Therefore, the rate of interest the account earned per year is approximately 0.04 or 4%.