SOLUTION: A certificate of deposit for one year pays $221 simple interest on a principal of $3400. What is the interest rate being paid on this deposit?

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: A certificate of deposit for one year pays $221 simple interest on a principal of $3400. What is the interest rate being paid on this deposit?      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 257814: A certificate of deposit for one year pays $221 simple interest on a principal of $3400. What is the interest rate being paid on this deposit?
Answer by rfer(16322) About Me  (Show Source):
You can put this solution on YOUR website!
i=Prt
r=i/Pt
r=221/3400*1
r=0.065 = 6.5%