You deposit $600 into a 6 month certificate of deposit. After 6 months the balan

Question

You deposit $600 into a 6 month certificate of deposit. After 6 months the balance is $618. Find the simple annual interest rate

Options:

A . 6%

B . 5%

C . 7%

D . 8%

Answer: Option A
1. TO FIND THE INTEREST, SUBTRACT THE PRINCIPAL FROM THE BALANCE.
$618 – $600 = $18
2.USE THE SIMPLE INTEREST FORMULA AND SOLVE FOR R.
I = PRT
18= 600 X R X (1/2)
R= 0.06 =6%

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