Susan put $375 into an account and one year later had $405.What interest rate was paid on Susan's deposit?
A)5 percent
B)7 percent
C)8 percent
D)10 percent

Question

Quizplus · Accepted Answer

To find the interest rate, we can use the formula:

Interest = Principal x Rate x Time

Where Principal is the initial amount deposited, Rate is the interest rate, and Time is the duration for which the amount was deposited.

In this case, the Principal is $375, Time is 1 year, and the Interest is $405 - $375 = $30.

Substituting these values in the formula, we get:

30 = 375 x Rate x 1

Solving for the rate, we get:

Rate = 30/375 = 0.08 or 8%

Hence, Susan earned an interest rate of 8% on her deposit.

Susan Put $375 into an Account and One Year Later