Question

Tammi deposited $520 into a bank account that earned simple interest each year. After 5 years, she had earned $156 in interest.

No money was deposited into or withdrawn from the account.

What was the annual interest rate?

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Answer 1

Answer: 6%

Okay, so this is how we are going to find the Interest rate (Work):

156/5=31.2

31.2 Dollars every year

31.2/520=.06

.06x100= 6% interest rate every year

I hope this helps, Have a great rest of your day. :)