Question

Six years ago $1.200 was put in the bank and in the end earned $485 of simple interest. What was
the interest rate for this bank account?

Show your work
I=
P=
R=
T=

Answer 1

Correct principal is $1200.

Answer:

R = 6.736%

Step-by-step explanation:

Formula for simple interest is;

Interest = PRT/100

We are given;

Principal; P = $1200

Time; T = 6 years

Interest; I = $485

Rate; R =?

From, Interest = PRT/100, we have;

485 = 1200 × R × 6/100

Making R the subject gives;

R = 485 × 100/(6 × 1200)

R = 6.736%