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abruzzese [7]
3 years ago
10

Tammy deposited $520 in the bank account that earns simple interest every year after 5 years she had earned $156 and interest if

no money was deposited into or withdrawn from the account what was the annual interest rate
Mathematics
1 answer:
aleksley [76]3 years ago
6 0

Answer:

6%.

Step-by-step explanation:

We have been given that Tammy deposited $520 in the bank account that earns simple interest every year after 5 years she had earned $156.

To find the interest rate we will use simple interest formula.

I=P*r*T

I= Interest.

P= Principal amount.

r=Annual interest rate (in decimal form).

T= Time in years.

We have been given that I=156, T=5, P=520

Upon substituting our values in above formula we will get,

156=520*r*5

156=2600r

r=\frac{156}{2600}

r=0.06

Let us multiply 0.06 by 100 to convert annual interest rate in percentage.

0.06*100=6 \text{ percent}

Therefore, the annual interest rate was 6%.

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</span>Hope this helps you!!
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