Question

Adam deposited $50,000 in a savings account with simple interest. Three years later, he had earned $6,000 in interest. What was the interest rate

Answer 1

hello! if adam made 6000 dollars from interest in 3 years, then assuming the rate was linear, he would have gotten 2000 dollars of interest per year. 2000 is 1/25 of 50000, so the interest rate is 1/25 per year, or 4%.