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kow [346]
2 years ago
5

50 Benson purchased a $1,800 certificate of deposit that earns s

Mathematics
1 answer:
Pavlova-9 [17]2 years ago
5 0

Answer:

3.2%

Step-by-step explanation:

The computation of the annual rate of interest is shown below:

As we know that

Simple interest = Principal × rate of interest × time period

($1,857.60 - $1,800)  = $1,800 × rate of interest × 1

$57.60 = $1,800 × rate of interest × 1

So, the rate  of interest is

= $57.60 ÷ $1,800 × 100

= 3.2%

Hence, the rate of interest on annual basis is 3.2%

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