Please help! A little confused.
1 answer:
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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= 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,
Let us multiply 0.06 by 100 to convert annual interest rate in percentage.
Therefore, the annual interest rate was 6%.