Question

Chloe invests money in an account paying simple interest. She invests $200 and no money is added or removed from the investment. After one year, she has $204. What is the simple percent interest per year?

Answer 1

Answer:

2%

Step-by-step explanation:

Chloe's simple interest for 1 year is $4. You can get this by subtracting the amount she invested from the total amount she got after one year.

• $204 - $200 = $4

Now that we know the simple interest, we can now get the simple interest rate or simple percent interest per year by dividing $4 by $200.

• $4 ÷ $200 = 0.02

Let's change 0.02 into a percentage.

• 0.02 x 100 = 2%

This means that every year, her investment will earn a 2% simple interest.

Answer 2

Answer:

2%

Step-by-step explanation: