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8 October, 19:46

A bank offers simple interest on a certificate of deposit. Jamie invests $500 and after one year earns $40 in interest. What was the interest rate on the certificate of deposit?

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  1. 8 October, 20:31
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    I=prt

    40=500r*1

    now you have to isolate the r

    so

    40/500=500r/500

    r=0.08

    now convert it into %

    8% ir your rate
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