SOLUTION: If $9,700 grows to $10,250 in 2 years, then find the simple interest rate earned. Round answer to nearest two decimal places. Use A=P+Prt

Question 1166723: If $9,700 grows to $10,250 in 2 years, then find the simple interest rate earned. Round answer to nearest two decimal places. Use A=P+Prt

Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
your formula is:
A = p + p * r * t
when A = 10250 and p = 9700 and t = 2, the formula becomes:
10250 = 9700 + 9700 * r * 2
subtract 9700 from both sides of the formula to get:
550 = 9700 * r * 2 which becomes:
solve for r to get:
r = 550 / (9700 * 2) = .0283505155.
that's your interest rate.
replace r with that in the original equation and solve for A to get:
A = 9700 + 9700 * .0283505155 * 2 = 10250.
this confirms the solution is correct.
your solution can be:
.03 if rounded to two decimal places, or:
2.84% if made into a percent and then rounded to 2 decimal places.
note that rate percent is equal to rate * 100.

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