Question
Ada invest 600 dollars in an account that earns simple interest. at the end of 3 years the investment is worth dollars 681. calculate the rate of simple interest per year.
Answers
GPT 3.5
To calculate the rate of simple interest per year, we can use the formula:
I = P * r * t
where:
I = the amount of interest earned
P = the principal (initial investment)
r = the rate of interest per year
t = the time period in years
Given that Ada invested $600 and the investment earned $681 at the end of 3 years, we can plug in the values into the formula:
681 = 600 * r * 3
Rearranging the equation to solve for r:
r = 681 / (600 * 3)
r = 0.3775
Therefore, the rate of simple interest per year is 0.3775 or 37.75%.
I = P * r * t
where:
I = the amount of interest earned
P = the principal (initial investment)
r = the rate of interest per year
t = the time period in years
Given that Ada invested $600 and the investment earned $681 at the end of 3 years, we can plug in the values into the formula:
681 = 600 * r * 3
Rearranging the equation to solve for r:
r = 681 / (600 * 3)
r = 0.3775
Therefore, the rate of simple interest per year is 0.3775 or 37.75%.