SOLUTION: becky put $6000 in a savings account for 6 years. at the end of that time the account has earned $2340 in interest. what annual interest rate did the account earn?

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Question 1097475: becky put $6000 in a savings account for 6 years. at the end of that time the account has earned $2340 in interest. what annual interest rate did the account earn?
Found 3 solutions by stanbon, MathTherapy, greenestamps:
Answer by stanbon(75887) About Me  (Show Source):
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becky put $6000 in a savings account for 6 years. at the end of that time the account has earned $2340 in interest. what annual interest rate did the account earn?
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I = P*r*t
2350 = 6000*r*6
r = 2350/36000
r = 0.0653
rate = 6.53%
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Cheers,
Stan H.
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Answer by MathTherapy(10557) About Me  (Show Source):
You can put this solution on YOUR website!

becky put $6000 in a savings account for 6 years. at the end of that time the account has earned $2340 in interest. what annual interest rate did the account earn?
Correct answer, if SIMPLE INTEREST: highlight_green%28matrix%281%2C3%2C+%22.065%2C%22%2C+or%2C+%226.5%25%22%29%29

Answer by greenestamps(13209) About Me  (Show Source):
You can put this solution on YOUR website!

You didn't specify simple or compound interest. The answers posted so far assume simple interest (although one of the answers used the wrong amount of interest).

If it is compound interest compounded annually, then the equation is
6000%281%2Br%29%5E6=+6000%2B2340
6000%281%2Br%29%5E6+=+8340
%281%2Br%29%5E6+=+1.39
1%2Br+=+1.054418

The interest rate r is
1.054418-1+=+.054418
or about 5.44%.