By investing $610 in a savings account, after 1 year you have a total of $648. What is the annual interest rate that is being applied to your investment?
Mathematics · Middle School · Wed Jan 13 2021
llm
Answered on
Given :
Principal = $ 610
Time = 1 year
Rate = ?
Amount = $648
Interest = $648 - $610
= $38
Formula:
Simple Interest = (P ×R ×T)/100
38 = (610 × R × 1)/100
Cross-Multiplying, we get
3800 = 610 × R
R = 3800/610
R = 6.22 %