Question

Maria invested $450 in a savings account and earned $126 in interest at the end of 7 years.



What was the interest rate?









A.
3.5%







B.
4%







C.
4.5%







D.
5%

Answer 1

Interest = principal * interest rate expressed as a decimal * time in years.
$126 = $450 * X * 7. Now multiply $450 * 7 years = $3,150
$126 = 3,150X
X=0.04=4%