Answer: 8.76%
Step-by-step explanation:
The formula to find the simple interest is given by :-
[tex]I=Prt[/tex], where P is the principal amount, r is rate of interest () in decimal and t is the time ( in years). (1)
Given : Justin deposited $2,000 into an account 5 years ago.
i.e. P = $2,000 , t= 5 years
He has just withdrawn $2,876. i.e. Future value = $2,876
Interest (I)=$2,876-$2,000=$876 [Subtract Principal value from Future value]
Substitute all the above values of P , t , and I in the formula (1) , we get
[tex]876 =(2000)r(5)\\\\\Rightarrow\ r=\dfrac{876 }{2000\times5}\\\\\Rightarrow r=\dfrac{876}{10000}=0.0876[/tex]
In percent , [tex]r=0.0876\times100=8.76\%[/tex]
Hence, the rate of interest = 8.76%
