Question

Raul deposited $3000 into a bank account that earned simple interest each year. After 3.5 years, he had earned $262.50 in interest.

No money was deposited into or withdrawn from the account.

What was the annual interest rate?

Answer 1

Annual interest rate is 2.5%

Explanation:

I = Prt

262.50 = 3000 * r * 3.5

262.50 = 10500r

r = 0.025 or 2.5%