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Alice earned $622.50 in interest on her savings in the bank. Before interest, the account had $12,450. What is the approximate percent she earned in interest?

3%

5%

7%

10%

Verified Answer :

iGreen

\(\sf~I=prt\)

Plug in what we know:

\(\sf~622.5=(12450)r(1)\)

Multiply:

\(\sf~622.5=12450r\)

Divide 12450 to both sides:

\(\sf~r=0.05\)

Multiply by 100:

\(\sf0.05\times100=5\%\)

Louli

Answer:

5%


Explanation:

% she earned in interest can be calculated by calculating the % of increase in the balance


We have:

Original balance = $12,450

Amount of interest = $622.5

This means that:

new balance = 12,450 + 622.5 = $13,072.5


Now, we can get the percentage of increase:

% of increase = \(\frac{Value_n_e_w - Value_o_l_d}{Value_o_l_d} *100\)


Substitute with the values we have to get the percentage of interest earned as follows:

% of interest earned = \(\frac{13072.5 - 12450}{12450} * 100\) = 5%


Hope this helps :)

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