$45000 is deposited into a savings account. After 1 year, 4 months and 20 days in totals $52500. Calculate the simple interest rate for this account

12%

Step-by-step explanation:

The simple interest formula is i = p*r*t, where p is the principal, r is the annual interest rate as a decimal fraction, and t is the number of years.

Subtracting $45000 from $52500 yields $7500, which represents the amount of interest earned.

1 year, 4 months and 20 days is equivalent to:

1 year, 4/12 year and 20/360 year, or 1.389 years

Then i = $7500 = $45000*r*(1.389).  Solving for r, we get:

  7500

= 7500/62505, or 0.11999.  0.12, or 12%, is a reasonable

45000(1.389)                                                                              approximation.