Knowee
Questions
Features
Study Tools

Camille invested $3,000 into an account that earned annual simple interest. She made no additional deposits or withdrawals, and after 9 years she had earned $1,755 in interest. What was the interest rate of the savings account?

Question

Camille invested 3,000intoanaccountthatearnedannualsimpleinterest.Shemadenoadditionaldepositsorwithdrawals,andafter9yearsshehadearned3,000 into an account that earned annual simple interest. She made no additional deposits or withdrawals, and after 9 years she had earned 1,755 in interest. What was the interest rate of the savings account?

🧐 Not the exact question you are looking for?Go ask a question

Solution

To find the interest rate, we can use the formula for simple interest which is I = PRT, where I is the interest, P is the principal amount, R is the rate, and T is the time.

In this case, we know that:

I = 1,755(theinterestearned)P=1,755 (the interest earned) P = 3,000 (the initial investment) T = 9 years (the time the money was invested for)

We want to find R (the rate). We can rearrange the formula to solve for R:

R = I / (PT)

Substituting the known values:

R = 1,755/(1,755 / (3,000 * 9)

R = 1,755/1,755 / 27,000

R = 0.065

To express this as a percentage, we multiply by 100:

R = 0.065 * 100 = 6.5%

So, the interest rate of the savings account was 6.5%.

This problem has been solved

Similar Questions

Amanda invested $9000 in a fund for 5 years and was paid simple interest. The total interest that she received on the investment was $1800. As a percentage, what was the annual interest rate of her investment?

After 88 years, Susan's account earned $900$⁢900 in interest. If the interest rate (in decimal form) is 0.10.1, how much did Susan initially invest?Susan's Bank StatementInterest Earned $900$⁢900Rate 0.10.1Time 88 YearsPrincipal Invested ?Step 3 of 3: Finally, solve the problem by substituting in the appropriate values. (Round your answer to 2 decimal places if necessary.)

Last year Sarah invested money in two accounts. The first account had an interest rate of 4%4% and the second account had an interest rate of 3%3%. If she invested $700$⁢700 more in the first account than the second and her total interest income was $392$⁢392, how much did she invest at each rate?

Vera wants to invest money for college in an account earning   simple annual interest. She invested  . She will not make any additional deposits or withdrawals after she opens the account.How much simple interest will Vera earn at the end of   years?Round your answer to the nearest cent.

After 88 years, Amanda's account earned $1500$⁢1500 in interest. If the interest rate (in decimal form) is 0.080.08, how much did Amanda initially invest?Amanda's Bank StatementInterest Earned $1500$⁢1500Rate 0.080.08Time 88 YearsPrincipal Invested ?Step 3 of 3: Finally, solve the problem by substituting in the appropriate values. (Round your answer to 2 decimal places if necessary.)

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.