Question

Sydney deposits $3,875 into our savings account she leaves that money untouched for three years after three years her account has earned $651 in interest what rate at which has her money growing

Answer 1

Answer: 5.6%

Explanation:

Formula for simple interest: Interest =
`(P* R * T)/(100)`, where P= Principal , R = Rate of interest , T= Time.

Given: P= $3,875, T= 3 years , Interest = $651

Substitute all values in formula, we get

`651=(3875* R*3)/(100)\\\\\Rightarrow\ R= (65100)/(3875*3)\\\\\Rightarrow\ R=5.6\%`

Hence, the required rate = 5.6%