Ned currently has a balance of $1,006.13 in an account he has held for 23 years. He opened the account with an initial deposit of $612. What is the simple interest rate on the account?

Question

anonymous · Answer

help please!

anonymous · Answer

The simple interest formula is I=PRT
I=Principal x Rate x Time
394.13 =  612 x unknown x  23    
solve for unknown, I'll let you do this.

anonymous · Answer

K

anonymous · Answer

after you get the unknown you will have to multiply by 100 because the rate is expressed as a decimal in the formula like say $45000 at 8% for 5 years.
I=45000 x (0.08) x 5 
the 0.08 is obtained by 8/100

anonymous · Answer

rate, we usually want percentage so that's why we have to multiply the unknown we figured to get it as a percentage.