Question

If a $3,500 investment earns $210 over 3 years, what is the annual rate?

Answer 1

Answer:

The annual rate of interest is 2 %  

Step-by-step explanation:

Given as :

The investment amount = $ 3,500

The Interest earn on investment = $ 210

The time period = 3  years

Let The annual interest rate = R

From simple interest method :

Simple Interest =  

Or, 210 × 100 = 3500 × R × 3

Or, R =

Or, R =  = 2

Hence The annual rate of interest is 2 %   Answer

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