SOLUTION: If Kachina Caron invested $1800 in a simple interest account and earned $27 in 3 months, what is the annual interest rate?

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Question 1094726: If Kachina Caron invested $1800 in a simple interest account and earned $27 in 3 months, what is the annual interest rate?
Answer by greenestamps(13200) About Me  (Show Source):
You can put this solution on YOUR website!

By logical analysis and basic arithmetic...

27%2F1800+=+0.015+=+1.5%25

Since the amount of interest earned in just one quarter of a year was 1.5%, the interest rate for the whole year is 4 * 1.5%, or 6%.

By formula (I = Prt) Interest = principal times rate times time:
27+=+1800%28r%29%281%2F4%29
27+=+450r
27%2F450+=+r
.06+=+r