Forgot how to do this problem ..

Mae currently has a balance of $8,484.79 in an account earning simple interest. Seventeen years ago she opened the account with an initial deposit of $4,854. What is the interest rate on the account?

4.4%

2.5%

10.3%

5.9%

Question

Forgot how to do this problem ..

Mae currently has a balance of $8,484.79 in an account earning simple interest. Seventeen years ago she opened the account with an initial deposit of $4,854. What is the interest rate on the account?

 4.4%

 2.5%

 10.3%

 5.9%

jdoe0001 · Answer

simple interest amount = principal x interest rate x time


so how much has she earned in interest in the 17 years?

anonymous · Answer

8484.79 *17*4854 ?

jdoe0001 · Answer

well, she started with $4854, and 17 years later she has a balance of $8484.79
so the accumulated amount will be the interest earned

anonymous · Answer

How you do that ?

jdoe0001 · Answer

get the difference in between

jdoe0001 · Answer

the amount that's not part of the original principal

anonymous · Answer

which is putting in a formula ?

jdoe0001 · Answer

she deposited $4854 once, it doesn't say that she added anything to her balance
so any accumulated amount after the 17 years is earned interest

that amount

anonymous · Answer

give me a visual example im confused

jdoe0001 · Answer

so say you put $10 in your wallet
walk 17 blocks and then reach into your wallet and low and behold!
now you have $25

so, there's some money that you didn't put in there
so in that cases, what would be the difference between the original amount in your wallet, and the new bloated amount?