Question

After 4 years, $3,006 deposited in a savings account with simple interest had grown to a total of $3,967.92. What was the interest rate?

Answer 1

So interest rate is 8% per annum

Explanation:

Principal amount = $3,006

Amount at end = $3,967.92

Time = 4yrs

interest money = ($3967.92 - $3006)

also equal to = 4 * (x/100) * $3,006

Where x is the interest rate per annum

So, 4 * (x/100) * $3,006 = ($3967.92 - $3006)

x = 8%

So interest rate is 8% per annum