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31 August, 12:46

Nigel currently has a balance of $668.47 in an account he has held for 15 years. he opened the account with an initial deposit of $497. what is the simple interest rate on the account?

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  1. 31 August, 12:51
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    You are given Nigel's current balance of $668.47 in an account he has held for 15 years. Also you are given an initial deposit of $497. You are asked to find the simple interest rate on the account. You will use the simple interest formula, F = P (1 + rn) were F is the current balance, P is the principal amount deposited, r is the rate and n is the number of years.

    F = P (1 + rn)

    668.47 = 497 (1 + r (15))

    r = 0.023 or 2.3%
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