Question

At what rate was an investment made that obtains $125.37 on $597 over three years?

Answer 1

I use simple annual interest to solve the problem

$125.37 -------------------------------- 3 years
X-------------------------------------------> 1 year
X=125.37/3=$41.79/ year

$597--------------------->100%
$41.79---------------------X%

X=41.79*100/597=7%
The rate was 7%