Question

After 4 years, $3,006 deposited in a savings account with simple interest had grown to a total of $3,967.92. What was the interest rate?

Answer 1

Answer:

Interest rate is r = 0.33

Step-by-step explanation:

Principal Amount = $3006

Final Amount = $3967.92

Time = 4 years

Interest Rate = ?

The formula used is: $Final Amount = Principal \times r \times t$

Putting values and finding t

$Final\: Amount = Principal \times r \times t \\3967.92=3006\times r \times (4)\\3967.92=12024\times r\\r=\frac{3967.92}{12024}\\r=0.33$

So, Interest rate is r= 0.33