[5.07] MA.7.A.1.2

Victor calculates the percentage interest rate he needs to make one hundred dollars in simple annual interest over 2 years on a deposit of one thousand dollars. Where did he go wrong?

I equals p times r times t; one thousand plus one hundred equals one thousand times r times two; one thousand one hundred equals one thousand times r times two; r equals zero point five five; r equals fifty-five percent

Question

[5.07] MA.7.A.1.2

Victor calculates the percentage interest rate he needs to make one hundred dollars in simple annual interest over 2 years on a deposit of one thousand dollars. Where did he go wrong?

I equals p times r times t; one thousand plus one hundred equals one thousand times r times two; one thousand one hundred equals one thousand times r times two; r equals zero point five five; r equals fifty-five percent

anonymous · Answer

He applied the principal and interest to the wrong variables. 

 He should have divided 2 by twelve to get the value for t. 

 He misrepresented the earned interest with the final balance. 

 He should have multiplied r by one hundred to get the interest rate as a percentage.

kropot72 · Answer

None of the answer choices is the correct explanation of where he went wrong.