Problema Solution
a certificate of deposit for 1 year pays $221 simple interest on a principal of $3400. what is the interest rate being paid on this deposit?
Answer provided by our tutors
interest = principal * rate * time
time is equal to 1 year
let 'r' represent the rate paid:
221 = 3400*r
r = 221/3400 = 0.065
the interest rate is 6.5%