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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? A. 6.5% B. 9.75% C. 2.25% D. 3.25%

Verified Answer :

Aliwohaish12

I=prt
When I want to find the rate
r=I/pt so
R=(270/60002)100==2.25%

Answer:

C. 2.25%

Step-by-step explanation:

Given : Simple interest = $270

           Principal = $6000

           time = 2 years

To F ind : Annual interest rate (R)

Solution :

using simple interest formula i.e.


\(S.I. = P*R*T\)


where R is in decimals


⇒\(270 = 6000*R*2\)


⇒\(\frac{270}{6000*2} = R\)


⇒0.0225 = R(IN DECIMAL)

Multiply by 100 to convert it in percentage

⇒R = 2.25%

Thus  the annual interest rate of the CD is 2.25%

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