> > Kenneth deposited $750.00 into an account and fifteen years later, the account had earned $787.50 in interest.

Kenneth deposited $750.00 into an account and fifteen years later, the account had earned $787.50 in interest.

What simple interest rate did the account earn?

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Kenneth deposited $750.00 into an account and fifteen years later, the account had earned $787.50 in interest.

What simple interest rate did the account earn?

Answer

The formula for the simple interest rate is I = Prn where I is the interest money earned, P = principal money, r = interest rate, n = number of period (commonly in years) Since the interest rate is the required, so r = I/(Pn) = 787.50/(750.00*15) = 0.07 = 7% So each year until 15 years, his money has increased at the interest rate of 7%.

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Virtual Teaching Assistant: John B.
Question Level: Basic
Karma: Free
Upload Date: 5/31/2017

This 25 words question was answered by John B. on StudySoup on 5/31/2017. The question contains content related to Math Since its upload, it has received 128 views.

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