A 2600 certificate of deposit held for 65 days was...

A $2600 certificate of deposit held for 65 days was worth $2627.70. What simple interest rate was earned? Assume a 360-day year. The certificate of deposit earned an interest rate of %. (Type an integer or decimal rounded to the nearest tenth as needed.)

Transcript

00:02 So we know that the interest that she got is the difference between these two things.

00:07 So she had, she started with 2 ,600 and she ended with 26, what was it, 2770.

00:14 2770.

00:16 Well, she started with 2 ,600, right? so what's the difference between these two things? it's $27 .70.

00:24 So that's how much interest that she got.

00:27 And we also know that we had interest of, or sorry, that the interest, formula is the interest equals the principle times the rate times the time.

00:39 Now we know the interest.

00:41 We know the principle that it was $2 ,600.

00:43 And we know that the time was, what was it, 65 days? 65 days.

00:51 So we know then that the interest, what was it, 2770, 2770 equals 2 ,600 times the rate, which we don't know, and then times the time, which is 65 out of 360.

01:10 65 out of 360.

01:12 It says to assume a 360 day year.

01:18 All right.

01:18 So all we need to do is, first of all, reduce this.

01:21 How many times is 65 go into 360? well, 65 divided by 360.

01:26 Well, 360 divided by 65 is a better way of doing it.

01:29 Okay, so we can say first maybe to divide by 2 ,600.

01:35 We're going to take these and divide them both by 2 ,600.

01:39 No, not 2 ,200, but 2 ,600.

01:41 So these cancel out, and i'm left with 2 ,600 on the left side.

01:46 I'll have 277 .27 .70 divided by 2 ,600.

01:52 I'm just putting that into my phone calculator, is equal to 0 .065385, and that is equal to the rate times 65 over 360.

02:10 Now, honestly, what i'm going to do is i'm just leaving this in my calculator...

Question

A $2600 certificate of deposit held for 65 days was worth $2627.70. What simple interest rate was earned? Assume a 360-day year. The certificate of deposit earned an interest rate of %. (Type an integer or decimal rounded to the nearest tenth as needed.)

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