After 6 years, Federico earned $1485 in simple interest from a cd into which he initially deposited $ 9000. What was the annual interest rate of the cd?
A. 2.75% B.5.5% C. 8.25 D.11%
The formula for simple interest is: I=Prt I=interest earned P= principal r= rate in decimal form t= time in years I=Prt 1485=9000(r)(6) 1485=54000r Divide by 54000: 0.0275=r Change to percent form: r=2.75%
