Anyone help ?

Abel currently has a balance of $10,986.50 in an account he has held for 25 years. He opened the account with an initial deposit of $5,110. What is the simple interest rate on the account?

4.0%

2.1%

8.6%

4.6%

Question

Anyone help ? 

Abel currently has a balance of $10,986.50 in an account he has held for 25 years. He opened the account with an initial deposit of $5,110. What is the simple interest rate on the account?
 
4.0% 

2.1% 

8.6% 

4.6%

luigi0210 · Answer

Do you know the formula?

anonymous · Answer

no

luigi0210 · Answer

Well aren't we screwed

johnweldon1993 · Answer

I = Prt....

@Luigi0210 lol

You want to solve for 'r' here

johnweldon1993 · Answer

I = interest earned
P = principal amount
r = rate
t = time (in years)

luigi0210 · Answer

that's what I thought the formula was but didn't think it was right :/

anonymous · Answer

@johnweldon1993 thank you :)

anonymous · Answer

now what ??

johnweldon1993 · Answer

no problem! :) and see never second guess yourself @Luigi0210

johnweldon1993 · Answer

first rearrange your equation to solve for 'r'

I = Prt

r = ...?

luigi0210 · Answer

plug in and solve :P 
well that's my power.. second guessing myself >.<

anonymous · Answer

we don't know r ?

johnweldon1993 · Answer

No, the 'r' is the interest rate ...which is what we're solving for

luigi0210 · Answer

Nope,it's like looking for x.. except x is r and there are more numbers

anonymous · Answer

ok

anonymous · Answer

can you do the steps

luigi0210 · Answer

Well the first step that I hope we can all do is set it up :l
10,986.50=5110(25)r

johnweldon1993 · Answer

Sure.....so like I said first we should rearrange this equation to solve for 'r'

I = prt

divide both sides by pt

r = I
    ---
     pt

right?

johnweldon1993 · Answer

So now plug in all your numbers

anonymous · Answer

this is difficult for me nvm guys.

johnweldon1993 · Answer

no it's easy you'll see the steps...if you want to continue?

luigi0210 · Answer

Naw come on don't give up.. you got this!! >.<

johnweldon1993 · Answer

and @Luigi0210 

I does not equal 10,986.50

I is the interest earned....so it would be Current balance - Principal balance

anonymous · Answer

ok so 10,986.50 - 5110??

luigi0210 · Answer

Well this why I'm the support instead of the solver :l

johnweldon1993 · Answer

so @kenbaby 

we have

$$r = \frac{ I }{ pt }$$

we know 'p' is (principal balance.... 5110)
t is the time (25 years)

and I is the interest earned.....which is the current balance - the initial balance
(10,986.50 - 5110)
(5876.50)

so you have all your numbers to plug in

$$r = \frac{ 5876.50 }{ 5110  25 }$$

johnweldon1993 · Answer

Not sure if that came out (didn't load for me) so I'll write it again just in case

r =      5876.50
        -----------
          (5110 * 25)

what does 'r' =...?

anonymous · Answer

2.1??

anonymous · Answer

oops no 21.73 is what i got

johnweldon1993 · Answer

not quite.....first ...what is 5110 TIMES 25?

anonymous · Answer

127750

johnweldon1993 · Answer

right....and now

what is 5876.50 DIVIDED by 127750?

anonymous · Answer

0.046

johnweldon1993 · Answer

perfect...and now to change that into a percent...you move the decimal place over 2 places to the right....to get ...?

anonymous · Answer

4.6?

johnweldon1993 · Answer

There you go :)
Your answer would be 4.6% :)

anonymous · Answer

Thank you so much

johnweldon1993 · Answer

anytime! :) and don't be so quick to give up on yourself :)

anonymous · Answer

:) can you help with a few more that I am posting I am working on a study guide and have to be done by 4:00!!

johnweldon1993 · Answer

I actually have to go...(already a bit late) but I'm sure anyone else would be happy to help you! :)