Question

Ann put $2,500 in the bank and left it for 2 years. At the end of the 2 years she found that she had $2,700. Calculate:

i) the simple interest earned.
ii) the annual rate percent paid by the bank.​

Answer 1

1. 200 per two years or 100/year, 2. 4%

Explanation:

2700-2500=200 interest earned for two years or 100 per year

principle x interest rate =interest earned per year

2500 x interest rate =100

interest rate =100/2500

interest rate =.04 or 4%