If $4,300 yields $1,290 in simple interest over six years, what is the annual rate?

Question

mathstudent55 · Answer

If it yields $1290 in 6 years, what does it yield in 1 year?

mathstudent55 · Answer

Simple interest yields the same amount of interest each year.
For example, if you deposit $100 at 3% simple interest per year, then each year you earn $3 since $3 is 3% of $100. 
If you leave the money for 6 years in the bank, you will earn 6 * $3 = $18 in interest over 6 years.

pphalke · Answer

ok how do I start to solve the problem? I think the answer is 5% I am not sure how to solve

mathstudent55 · Answer

I asked above. If you earn $1290 in 6 years, how much do you earn in 1 year?

mathstudent55 · Answer

Here are two ways of solving this problem:

A. 1. First find how much amount of interest is earned in 1 year by dividing the 
        total amount of interest earned by the number of years.
    2. Find what percent of $4300 the amount earned in 1 year is.

B. 1. Use the formula for simple interest, 
        I = prt, 
        where I = total interest amount earned,
        p = principal, the amount of money deposited
        r = annual interest rate
        t = time in years
    2. Plug in the numbers you have into the formula, and solve for i, the interest rate.

mathstudent55 · Answer

Can you follow the methods above?

dumbcow · Answer

$$1290 = 4300*6*r$$
$$r = \frac{1290}{4300*6}$$