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Financial Maths, SMB-008

Dante deposits $5000 into a savings account which earns simple interest.

No deposits or withdrawals are made from this account.

After 4 years, Dante notices there is $5600 in the account.

What is the annual rate of interest for the account?   (2 marks)

--- 4 WORK AREA LINES (style=lined) ---

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`3text(%)`

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`text(Interest per year)` `= (5600-5000)÷4`
  `= 600 ÷ 4`
  `= $150`

 

`:.\ text{Interest rate (p.a.)}` `= 150/5000 xx 100`
  `= 3 text(%)`

Filed Under: Simple Interest Tagged With: num-title-ct-corea, smc-4332-20-Find interest rate

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