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No money was deposited into or withdrawn from the account.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?

Answer 1

6%

Explanation:

r=(1/t)(a/p-1)

r=(1/5)(676/520)-1=0.06

r=0.06 x100=6% a year