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Step2247 [10]
3 years ago
10

Benson purchased a $1,800 certificate of deposit that earns simple annual interest. At the end of 1 year, the certificate was wo

rth $1,857.60.
Mathematics
1 answer:
Makovka662 [10]3 years ago
5 0

Answer:

<h2><u> 3.2%</u></h2>

Step-by-step explanation:

Step one:

given data

principal P= $1800

time t= 1 year

Final amount A=1857.60

rate r=?

Step two:

we are expected to solve for the rate, let assume the investment is a simple interest type.

A=P(1+rt)

solve for r we can substitute our data

1857.60=1800(1+r*1)

1857.60=1800+1800r

1857.60-1800=1800r

57.6=1800r

r=57.6/1800

r=0.032

0.032*100= 3.2%

<u>This shows that the rate is 3.2%</u>

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