Question

Stacy made a deposit of $8,500.00 into an account. After ten years, the account had earned $5,525.00 in interest. What simple interest rate did the account earn?

Answer 1

So I'm going to guess this is what they mean by simple interest. The amount gained in interest, what percent of that is it of the total? That's just (5525/8500)*100 to get the percentage. That's 65%. However spread out over 10 years means you need to divide that by 10 to get 6.5%.

Answer 2

6.5% because it is over a 10 year period you divide 8,500 by 10