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18 February, 22:32

Ellen made $52 in interest by placing $400 in a savings account with simple interest for 1 year. What was the interest rate?

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  1. 18 February, 22:43
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    Formula of simple interest rate: I=PxRxT

    I=52$

    P=400$

    R=?

    T=1 year

    I=PxRxT

    I/P/T=R

    52/400/1=R

    13%=R

    The interest rate was 13% per year.
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