Please help this is due tomorrow

Question

What simple interest rate would be required to grow an account to $6800 in 5 years, if the initial deposit was $6000



Answer 1

For simple interest we have: A = P*(1+rt)

A is the final Amount (The initial deposit + the interest earned).

P is the initial principle balance. (The initial deposit).

r is the annual interest rate.

and finally t is the time in years.

So your problem gives you A, P, and t.

r is the only thing you don't know.

Some algebra should get you the answer.

Notice though how r is an interest rate, this means if you solve for r and get 0.5. The interest rate is actually 50% not 0.5%.