Question

sylvia bought a 6 month $1900 certifcate of deposit. at the end of 6 months she received a $209 a simple interest what rate of interest did the certifcate pay show all of your work

Answer 1

Present value = $1900
Interest over six months = 209
=> interest over 12 months (1 year) = 2*209 = $418
Rate of interest
= 418/1900
= 0.22
= 22% per annum