Question

Nicole invested $400 in a fund for 6 years and was paid simple interest. The total interest that she received on the investment was $72. As a

percentage, what was the annual interest rate of her investment?

Answer 1

83.3333%

Explanation:

The accrued amount of an investment is the original principal P plus the accumulated simple interest, I = Prt, therefore we have:

A = P + I = P + (Prt), and finally A = P(1 + rt)