Question

If the simple interest on ​$7,000 for 7 years is ​$2,940​, then what is the interest​ rate?

Answer 1

Answer

I (Interest) = $1,440.60

Explanation:

First, converting R (rate) percent to r a decimal r = R/100 = 2.94%/100 = 0.0294 per year, then, solving our equation.

I = 7000 x 0.0294 x 7 = 1440.6
I = $1,440.60

The simple interest accumulated on a principal of $7,000.00 at a rate of 2.94% per year for 7 years is $1,440.60.

Answer 2

$~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\dotfill & \ 2940\\ P=\textit{original amount deposited}\dotfill & \ 7000\\ r=rate\to r\%\to \frac{r}{100}\\ t=years\dotfill &7 \end{cases} \\\\\\ 2940=7000(\frac{r}{100})(7)\implies \cfrac{2940}{7000(7)}=\cfrac{r}{100}\implies \cfrac{3}{50}=\cfrac{r}{100} \\\\\\ 300=50r\implies \cfrac{300}{50}=r\implies \stackrel{\%}{6}=r$