Li deposited $17,500 into a bank account that earned simple interest each year. After 2 years, he had earned $2975 in interest.

If no money was deposited into or withdrawn from the account, what was the annual interest rate?

Question

Mathematics

Skye Lawrence

29 March, 08:55

Li deposited $17,500 into a bank account that earned simple interest each year. After 2 years, he had earned $2975 in interest.

If no money was deposited into or withdrawn from the account, what was the annual interest rate?

+4

Answers (1)

Know the Answer?

Boston Hardy · Answer 1

Let x is the interest rate

$17,500 * 2 * x = $2975

$35,000x = $2,975

x = $2,975/$35,000

x = 0.085

0.085 * 100 = 8.5%

Answer: annual interest rate was 8.5%

Li deposited $17,500 into a bank account that earned simple interest each year. After 2 years, he had earned $2975 in interest.If no money was deposited into or withdrawn from the account, what was the annual interest rate?

Li deposited $17,500 into a bank account that earned simple interest each year. After 2 years, he had earned $2975 in interest.

If no money was deposited into or withdrawn from the account, what was the annual interest rate?