Question

Raul deposited $3000 into a bank account that earned simple interest each year. After 3.5 years, he had earned $262.50 in interest.

If no money was deposited into or withdrawn from the account, what was the annual interest rate?

Answer 1

3000 * 3.5 * i = 262.50
10500i = 262.50
i = 262.50 / 10500
i = 0.025

0.025 = 2.5%

answer: annual interest rate = 2.5%