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Andrew's bank account started off with a deposit of $750, and after 4 years he earned $165 in interest. The interest is simple interest, calculated on the basis of the initial deposit. What is the interest rate that Andrew's bank provides? Give your answer as a percentage to the nearest tenth of a percent. Do not include the percent symbol in your answer

Respuesta :

calculista

Answer:

[tex]r=5.5\%[/tex]

Step-by-step explanation:

we know that

The simple interest formula is equal to

[tex]I=P(rt)[/tex]

where

I is the Final Interest Value

P is the Principal amount of money to be invested

r is the rate of interest  

t is Number of Time Periods

in this problem we have

[tex]t=4\ years\\P=\$750\\I=\$165\\r=?[/tex]

substitute in the formula above

[tex]165=750(4r)[/tex]

Solve for r

[tex]r=165/[750(4)][/tex]

[tex]r=0.055[/tex]

Convert to percentage

[tex]r=5.5\%[/tex]