after 2 years, deion earned $270 in simple interest from a cd into which he initially deposited $6000. what…

after 2 years, deion earned $270 in simple interest from a cd into which he initially deposited $6000. what was the annual interest rate of the cd?\na. 9%\nb. 2.25%\nc. 6.75%\nd. 4.5%

after 2 years, deion earned $270 in simple interest from a cd into which he initially deposited $6000. what was the annual interest rate of the cd?\na. 9%\nb. 2.25%\nc. 6.75%\nd. 4.5%

Answer

Explanation:

Step1: Recall simple - interest formula

The simple - interest formula is $I = Prt$, where $I$ is the interest, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. We know that $I = 270$, $P=6000$, and $t = 2$.

Step2: Substitute values into formula

Substitute the given values into the formula: $270=6000\times r\times2$.

Step3: Solve for $r$

First, simplify the right - hand side: $6000\times2\times r = 12000r$. So, the equation becomes $270 = 12000r$. Then, solve for $r$ by dividing both sides of the equation by 12000: $r=\frac{270}{12000}=0.0225$.

Step4: Convert $r$ to percentage

To convert the decimal to a percentage, multiply by 100. So, $r = 0.0225\times100%=2.25%$.

Answer:

B. 2.25%