Question

After 1 year, $10,000 deposited in a savings account with simple interest had earned

$700 in interest. What was the interest rate?

Answer 1

Explanation:

12x × 10,000 = 700

x = 700 ÷ (12 × 10,000)

x = 700 ÷ 12,000

x = 0.58%

Answer 2

7%

$10,000 • .07 = $700