Question

Simon invested $2600 into a simple interest account for 2 years if account yielded $234 at the end of two year what was the interest rate write your answer as a percent

Answer 1

4.5%

Explanation:

$234 is interest for 2 years

interest for 1 year will be 234/2 = 117

117/2600 = 0.045 which is 4.5%

Answer 2

4.5%

Explanation:

I = prt

234 = 2600 × r × 2

r = 234/5200

r = 0.045

r = 4.5%