Question

If the simple interest on ​$4000 for 3 years is ​$720​, then what is the interest​ rate?

Answer 1

Answer:

0.06% annually

Step-by-step explanation:

Divide $720 by 3. We get $240, so we know this is the amount of interest we get per year. Dividing $240 by $4,000 gives us

$\frac{240}{4000} = 0.06$