Alice earned $622.50 in interest on her savings in the bank. Before interest, the account had $12,450. What is the approximate percent she earned in interest?

Question

tkhunny · Answer

This is a division problem, however, it has a significant deficiency.  It should mention a time period of some sort.

Alice earned interest FOR ONE YEAR.  -- Something like that.

Anyway, it's just a division problem.  What percent of 12450 is 622.50?

anonymous · Answer

Interest of $622.50 on $12,450 is an interest rate of 5%. To calculate, divide interest by principal: 622.5 / 12450 = 0.05 = 5%.