Question

Sheri invests $10,000 in a simple interest account for 8 years. What

interest rate must the account pay so she earns $2,000 in 8 years? *

Answer 1

2.5%

Explanation:

Simple interest:

I = prt

2000 = 10,000 * r * 8

r = 0.025

r = 2.5%