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15 July, 06:02

A bank says you can double your money in 8 years if you put $2,000 In a simple interest account. what annual interest rate does the bank pay?

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  1. 15 July, 06:24
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    A = P*r*t

    A = overall value

    P = principal (initial value)

    r = annual interest

    t = time (in years)

    Plug in what we have:

    4000 = 2000*r*8

    Simplify:

    0.25 = r

    The annual interest is 25%
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