Title: Megan Hughes deposits in an account that pays simple interest. When she withdraws her money months Post by: Judy Evans on Aug 14, 2022 Megan Hughes deposits 4200 in an account that pays simple interest. When she withdraws her money 7 months​ later, she receives 4494.00 . What rate of interest did the account​ pay? Round to the nearest whole percent.
Title: Re: Megan Hughes deposits in an account that pays simple interest. When she withdraws her money .. Post by: bio_man on Aug 14, 2022 A = PRT
P is the principal R is the rate that we're looking for. T is the time A is the amount of interest accumulated, so we take $4494 - 4200 = $294 Because the rate is the annual percentage, we must convert 7 months to years. So: 7 months times (1 year per 12 months), we get: T = 7/12 years. Let's put this all together: A = PRT 494 = 4200(R)(7/12) Divide both sides by 4200(7/12), we get: 294/(4200*7/12) = R 0.12= R Multiply R by 100%, we get: R = 12% Rounded to the nearest whole, that is 12% per year. Thumbs up if it helps |