Question

Caleb deposited $4,000 in an account that earned simple interest annually.

- He did not make additional deposits nor withdrawals.
-At the end of 5 years, the balance was $5,200.
What is the interest rate on this account?

Answer 1

6%

Explanation:

Subtract 4000 from 5200 . This is the amount of interest earned after 5 years.

Divide that by 5. This is the amount earned after 1 year.

What percent is that number of 4000? (6%)