Andreas invested $1000 in a savings account. After 4 years, the account had earned a total of $112 simple interest without any a

Question

enot [183]

4 years ago

12

Andreas invested $1000 in a savings account. After 4 years, the account had earned a total of $112 simple interest without any a

dditional deposits. What was his interest rate?

Mathematics

1 answer:

Westkost [7] · Answer 1 · 2021-11-21T20:37:43+03:00

Westkost [7]4 years ago

8 0

The formula to figure out Simple Interest is: I = PRT. Since this question is asking you to find the interest rate, you just have to rearrange the equation to make R the subject.

> R = I/PT
>> R = 112/1000 x 4 = 0.028 x 100 (find percentage) = 2.8%