Mathematics
lizbetx3
27

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 If no money was deposited into or withdrawn from the account, what was the annual interest rate?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.

+2
(2) Answers
ariwentz10

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

jussttalee

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%

Add answer