Question 1076468

Why, in my finance class, when asked this question - You invest $1,000 for 3 years at 6% per annum compounding quarterly. What is the equivalent annual simple rate of interest? - am I told the answer is 6.521%, when my calculator shows 6.136%, when I preform (1195.62/1000)^(1*3)-1. Am I missing something when trying to work out interest? Any answers would be greatly appreciated. Thank you.
<pre>The formula for future value, based on SIMPLE INTEREST is: A = P + PTR, where:
{{{A}}} = Future Value (1,195.62, in this case)
{{{P}}} = Principal (1,000, in this case)
{{{T}}} = Time, in years (3, in this case)
{{{R}}} = Annual interest RATE (Unknown, in this case)
Substitute these variables, solve for R, and see what you get!