Grayson deposited $4,500 into a new account. - The account earned annual sim

Brittney Lord

Brittney Lord

Answered question

2021-09-15

Grayson deposited $4,500 into a new account.
- The account earned annual simple interest.
- No withdrawals or deposits were made.
- At the end of 2 years, the balance of the account was $5,265.
What is the annual interest rate on this account?
I=Prt, plug in numbers and solve equation in your calculator.
Convert ALL answer choices to decimals (percent divided by 100)
A. 4.7%
B. 5.2%
C. 7.3%
D. 8.5%

Answer & Explanation

Derrick

Derrick

Skilled2021-09-16Added 94 answers

Grayson deposited $4.500. so P=$4500
At the end of 2 years, the balance of the account was $5265.
So, interest earn in t=2 years, I=$5265$4500
=$765
So, I=Prt gives
r=IPt=$765($4500)(2)=7659000
=0.085=0.085×100%
=8.5%
Answer: D. 8.5%

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