Maria invested $450 in a savings account and earned $126 in interest at the end of 7 years.

What was the interest rate?

A.

3.5%

B.

4%

C.

4.5%

D.

5%

Question

Mathematics

Charity

16 March, 21:54

Maria invested $450 in a savings account and earned $126 in interest at the end of 7 years.

What was the interest rate?

A.

3.5%

B.

4%

C.

4.5%

D.

5%

+3

Answers (1)

Know the Answer?

Asa Woodward · Answer 1

The interest rate is B. 4%

Given:

Principal = 450

Interest = 126

term = 7

rate = ?

Simple Interest is computed by multiplying the Principal, rate, and term.

Interest = P * r * t

126 = 450 * r * 7

126 = 3150r

r = 126/3150

r = 0.04 x 100% = 4%

To check:

I = 450 * 0.04 x 7

I = 18 * 7

I = 126

Maria invested $450 in a savings account and earned $126 in interest at the end of 7 years.What was the interest rate?A.3.5%B.4%C.4.5%D.5%

Maria invested $450 in a savings account and earned $126 in interest at the end of 7 years.

What was the interest rate?

A.

3.5%

B.

4%

C.

4.5%

D.

5%