SOLUTION: After 2 years, Deion earned $270 in simple interest from a CD into which he initially deposited $6000. What was the annual interest rate of the CD?
I thought at first that I wou
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I thought at first that I wou
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Question 734173: After 2 years, Deion earned $270 in simple interest from a CD into which he initially deposited $6000. What was the annual interest rate of the CD?
I thought at first that I would multiply all three of them together, but I really have no idea what I'm doing and I'd like to actually learn what to do rather than rely on asking other people everytime I have a problem like this pop up, so if you could please show me how that would be so great! Thank you! Answer by josmiceli(19441) (Show Source):
You can put this solution on YOUR website! Simple interest means that the investor earns the same % of the
principal each year. The principal is $6000.
So, for 1 year he earns interest = where is the rate of interest.
You are given that he earned $270 in interest after 2 yrs was earned in each of those 2 yrs.
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Let = interest earned in a year.
The simple interest rate was 2.25%
