Question 1152748
Simple interest is: INTEREST = PRINCIPAL * RATE * TIME
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We know the time is: 3 years and 5 months.  5 months is 5/12 of a year.  5/12 is 0.4167.  So the total time is 3.4167 years.
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James needs to account to grow to $3500.00  Since his principal is $2755.73, that means the total interest is: $3500.00 - $2755.73...or, $744.27.
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Plug in the numbers that we have into the formula:
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INTEREST = PRINCIPAL * RATE * TIME
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744.27 = 2755.73 * RATE(r) * 3.4167
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Now, simplify and solve for r:
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744.27 = 9415.50r
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r = 0.079
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<b>The interest rate is 7.9%.</b>