Question

Nigel currently has a account balance of 668.47 in an account held held for 15 years. He opened the account with an initial deposit of $497. What is the simple interest rate on the account

Answer 1

The formula is
A=p (1+rt)
A future value 668.47
P principle 497
R interest rate?
T time 15 years
Solve the formula for r
R=[(A/P)-1]÷t
R=((668.47÷497)−1)÷15
R=0.023×100
R=2.3%