Question

Mei-ling invested $2,000 in a simple interest account for 3 years. At the end of 3 years, she had earned $150 in interest. What was the simple interest rate of the account?

Answer 1

2.5%

Explanation:

Simple Interest formula : V = P + P*r*t

I = Prt

$150 = $2000*r * 3

r = $150 / ($2000*3) = 5/200 = 0.025 = 2.5%