Question

You save $1400 from a summer job. You decide to put it into an account that earns simple annual interest. After 9 months, your balance is $1421. Find the annual interest rate.

Answer 1

Answer:

2%

Step-by-step explanation:

Calculate annual interest amount first:

                annual interest x 9/12=21

                Annual interest =21x12/9

                 annual interest amount=$28

calculate annual interest rate

                1400 x interest rate = annual interest

               $1400 x interest rate = $28

                interest rate =$28/1400

                interest rate=.02 or 2%