Tammi deposited $520 into a bank account that earned simple interest each year. After 5 years, she had earned $156 in interest. If no money was deposited into or withdrawn from the account, what was the annual interest rate? Enter your answer in the box.
Annual means yearly so you need to get the rate each year 156/5=31.2 31.2 Dollars every year 31.2/520=.06 .06*100=6% interest rate every year
520 is the principal, 156 is the total interest in 5 years. Divide the 156 by 5, and you get $31.20 per year. divide: 31.2 / 520 = 0.06. convert that to a fraction, and you get the answer: 6%