Your savings account earns simple interest. You put in $400 2 years ago and have earned $40 in interest. What is the interest rate?

Question

asked Feb 26, 2021 174k views

1 Answer

Bastien Ho · Answer 1 · 2021-03-02T14:12:57+0000

Answer: 5% by year

Explanation:

You earned 40 bucks in 2 years so divide that by 2 and you get 20 bucks.

You put in 400 dollars and earned 20 bucks per year which is 5% of 400.