Question

1. mika opened a bank account that earns simple interest with an initial deposit of $2,200. she made no other transactions throughout the year. at the end of the year, mika had $2,260.50 in her account. what was the simple interest rate?

Explanation:

Step1: Calculate earned interest

$\text{Interest} = 2260.50 - 2200 = 60.50$

Step2: Recall simple interest formula

$I = P \times r \times t$
Where $I$ = interest, $P$ = principal, $r$ = rate, $t$ = time (years)

Step3: Plug in known values

$60.50 = 2200 \times r \times 1$

Step4: Solve for $r$

$r = \frac{60.50}{2200} = 0.0275$

Step5: Convert to percentage

$r = 0.0275 \times 100 = 2.75\%$

Answer:

$2.75\%$