A bank says you can double your money in 8 years if you put $2,000 In a simple interest account. what annual interest rate does the bank pay?

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asked Nov 17, 2017 188k views

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Hkidd · Answer 1 · 2017-11-21T19:08:37+0000

A = P*r*t
A = overall value
P = principal (initial value)
r = annual interest
t = time (in years)

Plug in what we have:
4000 = 2000*r*8
Simplify:
0.25 = r
The annual interest is 25%

A bank says you can double your money in 8 years if you put $2,000 In a simple interest account. what annual interest rate does the bank pay?

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