Question

Micah invested $3450 in an account paying simple interest. At the end of 6 years, the value of

Answer 1

Answer: 2.5%

3967.50 - 3450 = 517. 50

i = prt/100

i = 517.50, p = 3450, t = 6

517.50 = 3450 x r x 6/ 100

517.50 = 20700r/100

517.50 = 20700r

517.50/20700 = r

r = 0.025 = 2.5%

Answer 2

2.5%

To find the total amount of interest for the 6 years, we can do $3967.50 minus $3450 which is 517.5.

Next divide 517.5 by 6 to find the interest every year which is 86.25.

This means that x% of $3450 is 86.25. This can be written as x/100 x $3450 = 86.25
To find x, we divide 86.25 by 3450 to get 0.025
Finally multiply by 100 to get an interest rate of 2.5%.

Hope this helps!