Question

Aiden currently has a balance of $4,443.48 in an account he has held for 17 years. He opened the account with an initial deposit of $2,567. What is the simple interest rate on the account?

Answer 1

First calculate the interest earned by subtracting the initial deposite from the current balance
4,443.48−2,567=1,876.48

Now use the formula of the simple interest which is
I=prt
I interest earned 1876.48
P principle 2567
R interest rate?
T time 17 years
Solve the formula for r to get
R=I/pt
R=1,876.48÷(2,567×17)
R=0.043×100
R=4.3%

Hope it helps!