Question

Gustavo invests £520 for 6 years in a bank account paying simple interest. At the end of 6 years, the amount in the bank account is £629.20. Calculate the annual rate of interest.​

Answer 1

20.17%

Explanation:

Formula I=PRT

then R=I/PT

R=629.20/520 x 6

=0.2017

=0.2017 x 100%

=20.17%