Answered

IDNLearn.com makes it easy to find precise answers to your specific questions. Our platform provides accurate, detailed responses to help you navigate any topic with ease.

Taylor opened a savings account with $425. After 2 years, the total interest earned was $10.20. What was the annual interest rate?

Sagot :

Lanuelidn

Answer:

R = 1.2%

Step-by-step explanation:

Given the following data;

Principal = 425

Time = 2

Simple interest = 10.20

To find the annual interest rate;

Mathematically, simple interest is calculated using this formula;

[tex] S.I = \frac {PRT}{100} [/tex]

Where;

  • S.I is simple interest.
  • P is the principal.
  • R is the interest rate.
  • T is the time.

Substituting into the equation, we have;

[tex] 10.20 = \frac {425*R*2}{100} [/tex]

[tex] 10.20 = \frac {850R}{100} [/tex]

Cross-multiplying, we have;

[tex] 1020 = 850R [/tex]

[tex] R = \frac {1020}{850} [/tex]

R = 1.2%

Therefore, the annual interest rate is 1.2 percent.

We value your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Thank you for trusting IDNLearn.com with your questions. Visit us again for clear, concise, and accurate answers.