what is the simple intrest rate on the account?

Question

Abraham currently has a balance of $3075.21 in an account he has held for 13 years. He opened the account with an initial deposit of $2,152. what is the simple interest rate on the account?

Answer 1

Interest = Principle*Rate*Time

 

Where:

Interest = interest earned = $3075.21 - $2152 = $923.21

Principle = the initial deposit = $2152

Rate = the annual interest rate expressed as a decimal = unknown

Time = years = 13

 

$923.21 =  $2152*Rate*13

 

$923.21 = $27976*Rate

 

Solve for Rate .  Multiply by 100% to convert to a percent.