Question

20 points please explain in a simple way!

$6700 was invested into a simple interest account. after 3 years, the total value is $7162.30. determine the interest rate.

Answer 1

2.3%

Explanation:

You have $6700 in an account. After 3 years, it has grown to $7162.30. The extra money it earned during those 3 years is the interest.

To find the interest rate, we use this formula:

Interest = Principal x Rate x Time

Principal (the initial amount) is $6700.

Time (the number of years) is 3.

We want to find Rate (the interest rate).

We know Interest is $462.30 (because $7162.30 - $6700 = $462.30).

Now, we can plug this into the formula:

$462.30 = $6700 x Rate x 3

To find Rate, divide both sides by ($6700 x 3):

Rate = $462.30 / ($6700 x 3)

When you calculate that, you get Rate ≈ 0.023.

To express the interest rate as a percentage, multiply by 100:

Rate x 100 ≈ 0.023 x 100 ≈ 2.3%

So, the interest rate is approximately 2.3%.