Question

Fred deposited $10,000 in a savings

account with simple interest. Two years
later, he had earned $1,600 in interest.
What was the interest rate?

Answer 1

8% because $1,600 is 16% of the $10,000 Fred had deposited. 16/2=8

Answer 2

8%

Explanation:

1600 is 16% of 10000 and it has been 2 years.

so 16/2=8