Question

Tammi deposited $520 into a bank account that earned simple interest each year. After 5 years, she had earned $156 in interest.

No money was deposited into or withdrawn from the account.

What was the annual interest rate?

Enter your answer in the box.

Answer 1

6 percent

Explanation:

Interest =1 Part

156 = 520(annual rate )(5)

156 = 2600(annual interest rate )

annual rate=156/2600

annual interest rate = 0.06

annual interest rate=0.06*100

annual interest rate =6%

Answer 2

6%

Explanation:

Interest = Principal * rate * time

156 = 520(r)(5)

156 = 2600r

r = 0.06 or 6%