Toni put $500 into an account and one year later she had $534. What interest rate was paid on Toni's deposit?
A)7.1 percent
B)5.9 percent
C)6.8 percent
D)None of the above is correct.

Question

Quizplus · Accepted Answer

We can use the formula for simple interest: 
I = P*r*t 
where I is the interest earned, P is the principal (the amount deposited), r is the interest rate, and t is the time in years.
We know that P = $500, I = $34 (since she ended up with $534), and t = 1 year.
Substituting these values into the formula, we get:
$34 = $500*r*1
Solving for r, we get r = 0.068 or 6.8%. Therefore, the answer is (C) 6.8 percent.

Toni Put $500 into an Account and One Year Later