Question

$240 was invested at a simple annual interest rate for 2 years, and was worth a total of $276 at the end of this period of time. What was the interest rate?

Answer 1

Rate = Simple interest ÷ principal x time

$276-$240=$36(simple interest)

$36(Simple Interest) ÷$240(Principal)x 2(yrs)=0.075


Answer: 7.5%