A deposit of $10,000 was made to an account the year you were born. After 12 years, the account is worth $16,000. What simple interest rate did the account earn?

Question

asked Oct 4, 2021 193k views

1 Answer

Aneeq Azam Khan · Answer 1 · 2021-10-10T23:33:55+0000

Answer:

$5\%$

Explanation:

You got $6000 more, so each year you gain $500. Now we calculate the percentage out of 10,000 to find the simple interest rate:

$(500)/(10,000) = 0.05 \implies 5\%$