Answer:
9.0 % per year
Step-by-step explanation:
The formula for simple interest is
I = Prt
Divide each side by Pt
r = I/(Pt)
Data:
P = $2000
A = $2150
t = 10 mo
Calculations:
1. Calculate the interest
I = A - P = 2150 - 2000 = $150
2. Convert the time to years
t = 10 mo × 1 yr/12 mo = ⅚ yr
3. Calculate the interest rate
r = I/(Pt) = 150/(2000× ⅚)= 150/2000 × ⁶/₅ = 0.075 × 1.2 = 0.090 = 9.0 %
The simple interest rate is 9 % per year.
