Answer:
Step-by-step explanation:
<u><em>The correct question is</em></u>
A bank says you can double your money in 10 years if you put $1,000 in a simple interest account. What annual interest rate does the bank pay?
we know that
The simple interest formula is equal to
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest
t is Number of Time Periods
in this problem we have
substitute in the formula above
Solve for r
Divide by 1,000 both sides
Subtract 1 both sides
Divide by 10 both sides
Convert to percentage (multiply by 100)