Question

Kelli Rae's inheritance from her great-grandmother was 220000 after taxes. If Kelli Rae invests this money in a savings account that earns $18260 in simple interest every year, what is the interest rate

Answer 1

Answer:

The interest rate is 8.3%

Step-by-step explanation:

we know that

The simple interest formula is equal to

$I=P(rt)$

where

I is the Final Interest Value

P is the Principal amount of money to be invested

r is the rate of interest  

t is Number of Time Periods

in this problem we have

$t=1\ year\\ P=\ 220,000\\I=\ 18,260\\r=?$

substitute in the formula above

$18,260=220,000(r*1)$

$r=18,260/220,000$

$r=0.083$

Convert to percent form

$r=0.083*100=8.3\%$