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scoundrel [369]
3 years ago
14

You put $500 in a savings account. The account earns $15.75 simple interest in 6 months. What is the annual interest rate? Show

work step by step.
Mathematics
1 answer:
marta [7]3 years ago
3 0
So in 6 months (1/2yr) you earned $15.75 interest, if we double that we find the total interest you would gain for that year, 15.75x2= $31.5 total interest for that year.

To find the annual rate divide the interest gained by the amount deposited, 31.5/500 = 0.063% p.a.
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