Question

If a $3,500 investment earns $210 over 3 years, what is the annual rate?

Answer 1

The annual rate of interest is 2 %

Explanation:

Given as :

The investment amount = $ 3,500

The Interest earn on investment = $ 210

The time period = 3 years

Let The annual interest rate = R

From simple interest method :

Simple Interest =

Or, 210 × 100 = 3500 × R × 3

Or, R =

Or, R = = 2

Hence The annual rate of interest is 2 % Answer

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