Question

Fannie has a life insurance policy that will pay her family $24,000 per year if

Answer 1

Answer:

The rate is 2% per year.

Step-by-step explanation:

It is given that sum to be $1200000.

The interest per year to be received is $24000.

Let the rate of interest be "r".

The amount interest is given by the formula,

$(Interest) = (Principle amount)(\frac{Rate}{100})(Time)$

$24000 = (1200000)(\frac{r}{100})(1)$

$r = \frac{24000}{12000} = 2$

Thus the rate of interest is given by 2% per year.

Answer 2

Answer:

2%

Step-by-step explanation: