Question

Kenneth deposited $750.00 into an account and fifteen years later, the account had earned $787.50 in interest. What simple interest rate did the account earn?


Select the best answer from the choices provided.



3%



5%



7%



11%

Answer 1

I = PRT
I = 787.50
P = 750
T = 15
now we sub and find R (the rate)
787.50 = (750)(r)(15)
787.50 = 11250r
787.50 / 11250 = r
0.07 = r
0.07 x 100 = 7% = R

answer is 7%

Answer 2

I = PRT
I = 787.50
P = 750
T = 15
now we sub and find R (the rate)
787.50 = (750)(r)(15)
787.50 = 11250r
787.50 / 11250 = r
0.07 = r
0.07 x 100 = 7% = R

answer is 7%