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you deposited $2000 in an account. The account earns $120 simple interest in 18 months. What is the annual interest rate
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you deposited $2000 in an account. The account earns $120 simple interest in 18 months. What is the annual interest rate

you deposited $2000 in an account. The account earns $120 simple interest in 18 months-example-1
User Jacoballenwood
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Use the formula for simple interest:

i = p* r* t

Here, $120 = $2000*r* (18/12 years)

$120
Then r = ------------------ = 0.04. That's 4% per year.
$2000(1.5)
User C Black
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