Question

1.) (7.RP.3) Tracy started a savings account that is set up so that the simple interest earned on the investment is moved into a separate account at the end of each year. Tracy invests $5,000 at 4.5%, what is the total simple interest accumulated in the checking account after 2 years? Show your work. *
$4.50









$45









$450









$4,500









$45,000

2. (7.RP.3) Sylvia bought a 6-month $1900 certificate of deposit. At the end of 6 months, she received a $209 simple interest. What rate of interest did the certificate pay? *

Answer 1

Answer:

$450

Step-by-step explanation:

Each year, the amount of interest earned is ...

... 4.5% × $5000 = $225

After 2 years, a total of ...

... $225 × 2 = $450

has been transferred.

_____

Comment on percentages

Of course, you know that 4.5% = 4.5/100 = 45/1000 = 0.045.

You can think of the % symbol as a fancy (shorthand) way to write /100. (Likewise, the ‰ symbol means /1000.)