Answer: the interest rate on the account is 2.25%
Step-by-step explanation:
The formula for determining simple interest is expressed as
I = PRT/100
Where
I represents interest paid on the amount deposited.
P represents the principal or amount deposited
R represents interest rate
T represents the duration in years.
From the information given,
P = $500
T = 3 years
Total balance = $533.75
I = 533.75 - 500 = $33.75
Therefore,
33.75 = (500 × R × 3)/100
33.75 = 15R
R = 33.75/15
R = 2.25%
