## You put $500 in an account. The account earns$55 simple interest in 5 years. What is the annual interest rate?

Question

You put $500 in an account. The account earns$55 simple interest in 5
years. What is the annual interest
rate?

HURRY HELP

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2 months 2021-07-26T20:19:53+00:00 1 Answers 1 views 0

2.2% per year

Step-by-step explanation:

Problem:

You deposit $500 into a bank account and received$55 simple interest after 5 years. What had been the interest rate?

Result:

The interest rate was 2.2% per year.

Explanation:

Find interest rate by using the formula I = P*i*t , where I is interest, P is total principal, i is rate of interest per year, and t is total time in years.  In this example I = $55, P =$500 and t = 5 years, so

i = 55/500*5

i=0.022 = 2.2% per year

Hope it helps XD