Question

You deposit $800 in an account. The account earns $360 simple interest in 3 years. What is the annual interest rate?

Answer 1

15%

Explanation:

We have the followign simple interest formula

FV (aka AV)=PV(1+it)

which means that we have

(800+360)=800(1+3i)

1.45=1+3i

.45=3i

.15=i

15%