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

Question

Mathematics

Rylee Villegas

23 March, 13:16

Nigel currently has a account balance of 668.47 in an account held 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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Answers (1)

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Lilia Garcia · Answer 1

The formula is

A=p (1+rt)

A future value 668.47

P principle 497

R interest rate?

T time 15 years

Solve the formula for r

R=[ (A/P) - 1]:t

R = ((668.47:497) - 1) : 15

R=0.023*100

R=2.3%