Lily deposited $500 in a savings account. at the end of 1 year, she had earned $20 in simple interest. what interest rate did she receive?

Hi! To find the amount of simple interest earned, we can divide the amount earned in interest by the amount in the savings account. 20/500 is 0.04. To get this in percent form, multiply by 100 to get 4. Lily's savings account received an interest rate of 4%.

The household makes $424.45