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you deposited $2000 in an account. The account earns $120 simple interest in 18 months. What is the annual interest rate

you deposited 2000 in an account The account earns 120 simple interest in 18 months What is the annual interest rate class=

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altavistard
Use the formula for simple interest:

i = p* r* t

Here, $120 = $2000*r* (18/12 years)

                   $120
Then  r = ------------------ = 0.04.  That's 4% per year.
                  $2000(1.5)

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