SOLUTION: Your dad put $1,000 into a new bank account to save money for a family trip. He earned $18.75 in simple interest after 15 months. What is the annual interest rate

SOLUTION: Your dad put $1,000 into a new bank account to save money for a family trip. He earned $18.75 in simple interest after 15 months. What is the annual interest rate

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Question 1012783: Your dad put $1,000 into a new bank account to save money for a family trip. He earned $18.75 in simple interest after 15 months. What is the annual interest rate
Answer by fractalier(6550) (Show Source): You can put this solution on YOUR website!
Simple interest is found by I = prt. Here we wish to find the rate, r. So
r = I / pt = $18.75 / ($1000)(1.25 yr) = 18.75 / 1250 = .015 = 1.5%
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