Question

Jim deposited $350 into a savings account with simple interest at Hunting Bank. He left the money in his account with no changes for 4 years. At the end of 4 years, his bank statement showed he had earned $32.50 in interest. What is Jim’s interest rate for his savings account? Round to the nearest tenth of a percent. S

Answer 1

2.321428571%

Explanation:

Given in the question,

P=$350

T=4years

I=$32.50

We know that

I=PTR/100

32.50=350*4*R/100

R=32.50*100/350*4

R=2.321428571%

So, the rate of interest is 2.321428571%