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You invest $950 and over 4 years you earn $266. What is the interest rate?

2 Answers

8 votes

Answer:

0.07 = 7%

Explanation:

User Pleup
by
3.4k points
8 votes

Answer:

7% per year

Explanation:

r = rate
t = time (in years)
a = principal + interest (total amount)
p = principal amount
formula r = (1/t)(A/P - 1)

r = (1/4)((1216/950) - 1) = 0.07

r = 0.07

Converting r decimal to R a percentage

R = 0.07 * 100 = 7%/year

User Hontoni
by
2.9k points