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10 November, 01:56

Ron deposited $450 into a savings account for which simple interest is

calculated semiannually. If his $450 grew to $459 after 6 months, what is the

yearly interest rate on Ron's account?

A. 1%

B. 2%

C. 4%

D. 8%

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Answers (1)
  1. 10 November, 02:00
    0
    Step-by-step explanation:

    Simple Interest = Principal * Time * Rate / 100

    Semiannually means happening twice in a year.

    Interest rate = SI*100/Principal*Time

    Interest rate=$459-$450=$9 for 6 months, $9*2=$18 for a year.

    Rate=$18*100/450*1

    =4%
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