Question

By investing $610 in a savings account, after 1 year you have a total of $648. What is the annual interest rate that is being applied to your investment?

Answer 1

The annual investment rate applied to the investment is 6.23%

Explanation:

For finding out the interest rate we will use the Direct Rule of Three, this way:

Value of the investment Percent

$ 610 100

$ 648 x

610x = 64,800

x = 64,800/610

x = 106.23

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Annual investment rate = 106.23 - 100 = 6.23%