Question

Julie invested 3000 in a simple interest account for 2 years. At the end of the 2 years, she had earned $75 in interest. What was the simple interest rate of the account

Answer 1

The simple interest rate was: 1.25%

Step-by-step explanation:

Simple interest is given by:

$A = Prt\\Here\\A => Interest\\P=>Principal\ Amount\\r => Rate\\t => Time\ in\ years$

Given

Principal amount =$3000

Time = t = 2 years

Interest amount = A = $75

putting the values in the formula

$75 = 3000 * r * 2\\75 = 6000r$

Dividing both sides by 6000

$\frac{6000r}{6000} = \frac{75}{6000}\\r = 0.0125$

So,

The rate is:

0.0125 * 100 = 1.25%

Hence,

the simple interest rate was: 1.25%

Keywords: Simple interest, percentage

Learn more about interest at:

• brainly.com/question/5720422
• brainly.com/question/5565320

#LearnwithBrainly