Question

The simple interest formula is A = P(1 + r)t where P represents the amount originally deposited, r is the interest rate, and A is the amount in the account after t years.
Find r if A = 2700, P = 2200 and t = 5.
2700 = 2200(1 + r)5
Express r as a percentage to one decimal place (x.x%).

Answer 1

2700 = 2220 (1 + r ) 5


5 divided by 1 = 5

2220 divided by 5 = 440

2700 divided by 440 = 6.13%