Question

Hannah deposited 7,090 in a savings account with simple interest 3 months later the account held 7,267.25 what was the interest rate

Answer 1

The interest rate can be calculated using the simple interest formula:

Interest = Principal x Rate x Time

In this case, the principal (P) is 7,090, the time (t) is 3 months, and the interest (I) is 7,267.25 - 7,090 = 177.25.

Now, let's solve for the interest rate (r):

r = I / (P x t)

r = 177.25 / (7,090 x 3/12)

r = 0.0075

So, the interest rate is 0.75% or 75 basis points.