The question is incomplete:
Andy currently has a balance of 4,585.92 in an account he has held for 21 years. He opened the account with an initial deposit of 3,278. What is the simple interest rate on the account?
Answer:
Explanation:
To find the answer you have to use the formula to calculate the interest rate:
r=(1/t)(A/P-1), where:
r=rate of interest
t= time period=21 years
A= accrued amount=4,585.92
P= principal amount=3,278
Now, you can replace the values in the formula:
r=(1/21)(4,585.92/3,278-1)
r=(0.0476)(0.3989)
r=0.0189→1.89%
According to this, the answer is that the simple interest rate on the account is 1.89%.