Answer:
The rate at which the $1000 is invested is 4%.
Since the answer is required to be written without the percent sign, it therefore implies that he rate at which the $1000 is invested is 4.
Step-by-step explanation:
Amount invested = $1000
Total interest income over the course of 3 years = $120
Number of years = 3
Annual interest income = Total interest income over the course of 3 years / Number of years = $120 / 3 = $40
The interest ate on the $1000 invested can now be calculated as follows:
Interest rate = (Annual interest income / Amount invested) * 100 = ($40 / $1000) * 100 = 0.04 * 100 = 4%
Therefore, the rate at which the $1000 is invested is 4%.
Since the answer is required to be written without the percent sign, it therefore implies that he rate at which the $1000 is invested is 4.
