Question

megan hughes deposits 2100 in an account that pays simple interest. when she withdraws her money 11 months later, she receives $2138.50. what rate of interest did the account pay for?

Answer 1

Answer:

The rate at which the account pay the deposit is 2 %

Step-by-step explanation:

Given as :

The principal amount deposited in account = $2100

The rate of interest = r % simple interest annually

The time period = 11 months = $\frac{11}{12}$ year

The amount received = $2138.50

Now, From Simple Interest method

Simple Interest = $\dfrac{\textrm Principal\times \textrm rate\times \textrm time}{100}$

Or, Interest = $\dfrac{2100\times r\times \frac{11}{12}}{100}$

Or, Interest = $\frac{21\times r\times 11}{12}$

Or, Interest = 19.25 r

Now, Interest = Amount - Principal

So, 19.25 r = $2138.50 - $2100

Or, 19.25 r = $38.5

∴ r = $\frac{38.5}{19.25}$

I.e r = 2

So, rate of interest = r = 2 %

Hence The rate at which the account pay the deposit is 2 % Answer