Question

Henri's balance in his savings account was $12,000. The savings

account earns annual simple interest. At the end of four years, the
balance of the account was $13,536. If Henri did not make any
additional deposits or withdrawals during this time, what was the
annual interest rate on this savings account?
18

Answer 1

3.2%

Explanation:

I = prt

I = $13,536 - $12,000 = $1,536

1,536 = 12,000 × r × 4

r = 1,536/(12,000 × 4)

r = 0.032 = 3.2%