Question

Abraham currently has a balance of $3,075.21 in an account he has held for 13 years. He opened the account with an initial deposit of $2,152. What is the simple interest rate on the account?

Answer 1

I = PRT for R
R = I/PT
P = 2152, T = 13, I = 3075.21 - 2152 = 923.21

R = I/PT
R = 923.21/(2152)(13)
R = 923.21/27976
R = .033
put it in percent form = 3.3%

check...
I = PRT
923.21 = (2152)(.033)(13)
923.21 = 923.208 rounds to 923.21 (correct)

The interest rare is 3.3%

Answer 2

Thanks, a medal for ya

Answer 3

no problem.....got a little confused with the interest...finally figured out that you have to do some subtracting :)