Thank you.

Charles deposited $12,000 in the bank. He withdrew $5000 from his account after one year. If he receives a total amount of $9340 after 3 years, find the rate of simple interest.

- Thread starter sburke78
- Start date

Thank you.

Charles deposited $12,000 in the bank. He withdrew $5000 from his account after one year. If he receives a total amount of $9340 after 3 years, find the rate of simple interest.

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Please show your work (on this check, or on an attempted solution), so we can guide you through whatever part is giving you trouble.

I have to add, though, that this doesn't sound like a prealgebra problem, even if "prealgebra" includes the beginnings of algebra.

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The first year Charles had $12,000 in his account.

Thank you.

Charles deposited $12,000 in the bank. He withdrew $5000 from his account after one year. If he receives a total amount of $9340 after 3 years, find the rate of simple interest.

The 2nd year he had $7,000 in his account

The 3rd year he had $7,000 in his account

Ignoring interest for a moment he should have $7,000 after 3 years (do you see why?). So how much interest was earned?

Here is a big hint. Since this is simple interest, if Charles put in ($12,000 + $7,000 +$7,000) =$26,000 all at once for ONE year he would earn the same amount of interest compared to the three year scenario you have above.

See what you can do with this information!