1. $1000 is deposited into an account paying 2.3% simple interest for 5 years. What is the future value and the total interest earned?
There are several solutions. Here are two of them:
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2. A customer invested $250 for 5 years and got back $284. Find the annual simple interest rate.
I = Prt implies r = I/(Pt) but I = A-P so r = (A-P)/(Pt)