Problema Solution
A bank deposit paying simple interest grew from an initial sum of $1,000 to a sum of $1075 in 9 months. Find the interest rate.
Answer provided by our tutors
P = $1,000
A = $1079
t = 9 months = 9/12 years
r = the annual interest rate
A = P + P*r*t
A = P(1 + rt)
1000(1 + r*(9/12)) = 1079
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click here to see the equation solved for r
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r = 0.1053 or 10.53%
The interest rate is 10.53%.