Question

After 4 years, $3,006 deposited in a savings account with simple interest had grown to a total of $3,967.92. What was the interest rate?

Answer 1

Interest rate is r = 0.33

Explanation:

Principal Amount = $3006

Final Amount = $3967.92

Time = 4 years

Interest Rate = ?

The formula used is:
`Final Amount = Principal * r * t`

Putting values and finding t

`Final\: Amount = Principal * r * t \\3967.92=3006* r * (4)\\3967.92=12024* r\\r=(3967.92)/(12024)\\r=0.33`

So, Interest rate is r= 0.33