Question

The amount of interest earned from a savings account was $580. What was the interest rate if $1432 was deposited 6 years before

Answer 1

Explanation:

Solving our equation

r = 580 / ( 1432 × 6 ) = 0.06750466

r = 0.06750466

converting r decimal to a percentage

R = 0.06750466 * 100 = 6.7505%/year

The interest rate required to

accumulate simple interest of $ 580.00

from a principal of $ 1,432.00

over 6 years is 6.7505% per year.