Question

A bank says you can double your money in 10 years if you put $1,000 in a simple interest account. What annual interest rate does the bank pay? A) 1% B) 1.25% C) 10% D) 12.5%

Answer 1

10%
R=(1/10)((2000/1000)-1)=0.1
r=0.1
0.1=10%