SOLUTION: a savings account is set up so that the simple interest earned on the investment is moved into a seperate checking account at the end of each year if an investment of $2000 accumu

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Question 1101733: a savings account is set up so that the simple interest earned on the investment is moved into a seperate checking account at the end of each year if an investment of $2000 accumulation $330 of interest in the checking account after 3 years what is the annual simple interest rate
Found 2 solutions by stanbon, greenestamps:
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
if an investment of $2000 accumulation $330 of interest in the checking account after 3 years what is the annual simple interest rate
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I = P*r*t
Solve for "r"::
330 = 2000*r*3
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r = 110/2000
rate = 0.055 = 5.5%
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Cheers,
Stan H.
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Answer by greenestamps(13198) About Me  (Show Source):
You can put this solution on YOUR website!


With this arrangement, interest is not compounded. So if $330 of interest is earned in 3 years, the yearly interest is $110.

Then the interest rate is 110%2F2000+=+.055

The interest rate is .055, or 5.5%.