Question

You put $5,000 in a simple interest account at a bank. You will earn $1,200 in just 4 years. What is the annual interest rate for the account?

Answer 1

Answer:it’s 6%

Explanation:

Answer 2

The annual interest rate for the account is 6%

Explanation:

Given : You put $5,000 in a simple interest account at a bank. You will earn $1,200 in just 4 years.

We have to calculate the rate of interest.

Using simple interest formula,

`SI=(p* r* t)/(100)`

Where P is principal

r is rate of interest

t is time period.

Given Principal = $ 5000

t = 4

SI = 1200

Substitute, we have,

`1200=(5000* r* 4)/(100)`

Simplify, for r, we have,

r = 6%

Thus, the annual interest rate for the account is 6%