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18 June, 07:44

Over the last 4 years, Micheal has earned $240 interest on an initial investment of 2,000. What simple annual interest rate in the bank paying on this account?

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  1. 18 June, 08:12
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    3% simple interest

    Step-by-step explanation:

    Simple interest formula is:

    I = P*r*t

    P = $2000

    r = ?

    t = 4

    I = $240

    240 = 2000 * r * 4

    60 = 2000r

    r = 60/2000

    r = 3/100 = 0.03 = 3%
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