Adele had 5,300 in a savings account with simple interest. She had opened the account with 5,000 exactly 2 years earlier. What was the interest rate?

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Solution

Adele had 5, 300 in a savings account with simple interest. She had opened the account with 5, 000 exactly 2 years earlier. What was the interest rate?

Solution

Rate : 3%

Solution steps

Translate the problem into an equation:

5300 = 5000 (1 + r \cdot 2)

Solve for

r, 5300 = 5000 (1 + r \cdot 2) : r = 3%

Rate : 3%

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