Question

Noel currently has a balance of 2300.37 in an account he has held for 34 years. he opened the account with an initial deposit of 874.00...what is the simple interest rate on the account?

Answer 1

The formula for Simple Interest goes as folows:

I = prt (I = Interest; P = principal; R = Interest Rate; T = Time in Years)

Find 'I' by subtracting 2,300.37 - 874.00 = 1,426.37

1,426.37 = (874.00)(r)(34)
1,426.37 = 29,716r
r = 0.480000067...
r = about 4.8%