You purchase a $200 savings bond. After 5 years, it was worth $232.50. Find the simple interest rate for the bond
+130536 We have
A = P (1 + rt) where A is the amount, P is the original principal, r is the rate and t is the time...so we have.....
232.50 = 200 (1 + r (5) ) divide both sides by 200
232.50 / 200 = 1 + 5r subtract 1 from both sides
232.50 / 200 - 1 = 5r divide both sides by 5
(232.50 / 200 - 1) / 5 = r = .0325 = 3.25%
+130536 We have
A = P (1 + rt) where A is the amount, P is the original principal, r is the rate and t is the time...so we have.....
232.50 = 200 (1 + r (5) ) divide both sides by 200
232.50 / 200 = 1 + 5r subtract 1 from both sides
232.50 / 200 - 1 = 5r divide both sides by 5
(232.50 / 200 - 1) / 5 = r = .0325 = 3.25%
