Question

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?

Answer 1

i really need help finding this answer.. :[ it's the only way i can graduate..

Answer 2

1006.13 - 612 = 394.13 (this is your interest)
The formula you use is I = PRT, but you are looking for the rate, so change the formula to read R = I/PT.
This is what we know...
I = 394.13
P = 612
T = 23

Lets sub it in...
R = I/PT
R = 394.13 / (612)(23)
R = 394.13 / 14076
R = .0279 rounded = .028

Now you have to turn the rate into a percent...
.028 x 100 = 2.8%

check....
I = PRT
394.13 = (612)(.028)(23)
394.13 = 394.128 rounded = 394.13 (correct)

Ned has an interest rate of 2.8%

Do you have any questions ?

Answer 3

no thank you so very much:D

Answer 4

your welcome :)