Question

A bank account has a beginning balance of $560.00. After 6 months, the balance in the account has increased to $572.60. What interest rate is being earned annually on this account?
2.20%
.045%
2.25%
4.5%

Answer 1

Answer:

D. 4.5%.

Step-by-step explanation:

Interest earned in 6 months = 572.6 - 560 = $12.60.

As a percentage this is (12.60 * 100) / 560

= $ 2.25%.

So the annual interest is 2 * 2.25

= 4.5%.