If $447 yields $57 in simple interest over 8 years, what is the annual rate? State your answer as a percent rounded to the nearest hundredth, but do not include a % symbol with your response.

Question

If $447 yields $57 in simple interest over 8 years, what is the annual rate?  State your answer as a percent rounded to the nearest hundredth, but do not include a % symbol with your response.

anonymous · Answer

Use the simple interest formula: I = P * r * t, plug in all the values you have and solve for r.

anonymous · Answer

i came up with 57=3576x , i divided 57 by 3576 and got .0159 .. is the answer .15%? or 1.5 percent? or 15%?

ranga · Answer

In the formula I = P * r * t,  r is in decimal.
To convert decimal to percentage you have to multiply by 100.

ranga · Answer

r = 0.01594
convert decimal to percentage by multiply by 100.
r = 1.59%  or 1.6% (rounded to 1 decimal)

anonymous · Answer

thank you!

ranga · Answer

you are welcome.