•Susan put $375 into an account and one year later had $405. What interest rate was...
•Susan put $375 into an account and one year later had $405. What interest rate was paid on Susan’s deposit?
•A. 5 percent
•B. 7 percent
•C. 8 percent
•D. 10 percent
Homework Answers
Answer : Option C is correct.
A=$405
P =$375
n= 1 year
A= P(1+r)n
405= 375( 1+r)1
1.08= 1+r
r=0.08
Therefore, rate of interest is 8%
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