Question

If Nelson invests $5,000 for 4 years and earns $600, what is the simple interest rate?

Answer 1

3

Explanation:

Answer 2

Simple interest rate = 3%.

Since the given invested amount = $5000, number of years of investment = 4 years, interest earned = $600. 600 = 5000 × R × 4, 600 = 20000R, Dividing both sides by 20000, we get 0.003 which is 3%.