Bayo received $1500 as interest from the $8,800 he invested with PNC Bank. If the money was invested for 4 years, at what was the interest rate?
same as before, if simple interest
I = Prt
so plug in your numbers.
I am confused what do you mean by Prt
Read the data they gave you.
P is the principal
r is the interest rate
t is the number of years
I is the interest. So, you now have
1500 = 8800*r*4
r = 1500/(8800*4) = 0.0426 or about 4.26%
Looks like you need to review the topic of simple interest.
To find the interest rate, we can use the formula:
Interest = Principal * Rate * Time
Where:
- Interest is the amount of interest received ($1500 in this case)
- Principal is the initial amount invested ($8,800 in this case)
- Time is the number of years the money was invested (4 years in this case)
- Rate is the interest rate we want to find
Now we can rearrange the formula to solve for the interest rate:
Rate = Interest / (Principal * Time)
Plugging in the given values:
Rate = $1500 / ($8,800 * 4)
Rate = $1500 / $35,200
Rate ≈ 0.0426 or 4.26% (rounded to two decimal places)
So, the interest rate is approximately 4.26%.