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Benson purchased a $1,800 certificate of deposit that earns simple annual interest. At the end of 1 year, the certificate was worth $1,857.60.



What is the annual interest rate on this certificate of deposit?

Respuesta :

Answer:

3.2%

Step-by-step explanation:

Here, we want to calculate the annual interest rate

The interest is = Amount - principal = 1857.60 - 1800 = 57.60

‘Mathematically;

Interest = PRT/100

P is 1,800

r is rate

t is time = 1

57.60 = (1800 * r * 1)/100

100 * 57.60 = 1800r

r = 5760/1800

r = 3.2%

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