Question

Kira invested $800 in a fund for 6 years and was paid simple interest. the total interest that she received on the investment was $240. as a percentage, what was the annual interest rate of her investment?

Answer 1

5%

Explanation:

$240 divided by 6 years = $40 per year.

This means that the interest rate was 40/800 = 1/20 = 5%