SOLUTION: A savings account is set up so that the simple interest earned on the investment is moved into a separate checking account at the end of each year. If investment of $4000 accumula
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Question 1034088: A savings account is set up so that the simple interest earned on the investment is moved into a separate checking account at the end of each year. If investment of $4000 accumulate $680 of interest in the checking account after two years, does annual simple interest rate on the savings account ? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! A savings account is set up so that the simple interest earned on the investment is moved into a separate checking account at the end of each year. If investment of $4000 accumulate $680 of interest in the checking account after two years, does annual simple interest rate on the savings account ?
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I = P*r*t
680 = 4000*r*2
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r = 680/8000 = 0.085 = 8.5%
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Cheers,
Stan H.
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