Tammi deposited $520 into a bank account that earned simple interest each year. After 5 years, she had earned $156 in interest.

If no money was deposited into or withdrawn from the account, what was the annual interest rate?

Enter your answer in the box.

Question

Matias Sawyer

Mathematics

24 August, 21:29

Tammi deposited $520 into a bank account that earned simple interest each year. After 5 years, she had earned $156 in interest.

If no money was deposited into or withdrawn from the account, what was the annual interest rate?

Enter your answer in the box.

+5

Answers (2)

Know the Answer?

Irvin Preston · Answer 1

520 is the principal, 156 is the total interest in 5 years. Divide the 156 by 5, and you get $31.20 per year. divide: 31.2 / 520 = 0.06. convert that to a fraction, and you get the answer: 6%

Kirk · Answer 2

Annual means yearly so you need to get the rate each year

156/5=31.2

31.2 Dollars every year

31.2/520=.06

.06*100=6% interest rate every year

Tammi deposited $520 into a bank account that earned simple interest each year. After 5 years, she had earned $156 in interest.If no money was deposited into or withdrawn from the account, what was the annual interest rate?Enter your answer in the box.

Tammi deposited $520 into a bank account that earned simple interest each year. After 5 years, she had earned $156 in interest.

If no money was deposited into or withdrawn from the account, what was the annual interest rate?

Enter your answer in the box.