Amelia deposited $3,472 in a savings account earning simple interest 23 years ago. The account balance is now $5,148.98. What is the interest rate on the account?

1.4%

2.1%

4.3%

6.4%

@agent0smith

Question

Amelia deposited $3,472 in a savings account earning simple interest 23 years ago. The account balance is now $5,148.98. What is the interest rate on the account?

 1.4%

 2.1%

 4.3%

 6.4%  

@agent0smith

anonymous · Answer

3,472(1 + 23x) = 5,148.98 where x is the interest rate

anonymous · Answer

u would get x = 0.02100005 or 2.1%

agent0smith · Answer

You can also use  I = Prt

P=principal amount, 3,472 
I = interest 
r = rate 
t=time = 23 

your interest would be    $5,148.98 - $3,472 = 1676.98

so... 1676.98 = 3,472*r*23

divide both sides by 3472*23 to find r

anonymous · Answer

hmm that works too huh? lol

agent0smith · Answer

haha it's the same thing you did, exactly :P

anonymous · Answer

thanks guys <3

anonymous · Answer

ur 30 minutes late lol yea no problem