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Simple Interest

  1. Oct 18, 2017 #1
    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. jcsd
  3. Oct 18, 2017 #2

    mfb

    User Avatar
    2016 Award

    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.
     
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