Homework Help: Simple Interest

1. Oct 18, 2017

lil.l3b91

1. The problem statement, all variables and given/known data
Dylan received an academic achievement prize of $2,000 from his college. He deposited this money into a savings account on July 15, 2016. If the interest accumulated on the investment when he withdraws the money on March 29, 2017 was$73.93, calculate the annual rate of simple interest that the savings account was providing him.

Round to two decimal places

2. Relevant equations

r=I/pt
I=prt
3. The attempt at a solution
p=2000
I=73.93
t=257/365

73.93/2000*257/365
73.93/2000*(0.70410959)\
73.93/1,408.219180
=19,04800728
0.02%?

2. Oct 18, 2017

Staff: Mentor

It is useful to put brackets around denominators, otherwise expressions like a/b*c are interpreted as (a/b)*c instead of a/(b*c) as you used it here.

It looks fine up to the third line from the bottom. What does the 19,... do there? And where does the 0.02% come from?
0.02% of \$2000 is less than a dollar. Clearly within less than a year you can’t get more than 70 dollars interest that way.