If you invest 5000 into an account that earns simple interest and

Question

after 13 years the account has 7.656 what is the insterest rate the account was earning for those 13 years

Answer 1

Simple Interest for 13 years = Amount - Principal

= Amount after 13 years - Amount before 13 years 

= 7656- 5000 = 2656 $  - (Eqn 1)

 

Also, Simple Interest= (Principal) * (Time) * (Rate of Interest)/ 100

= 5000 * (13) * Rate /100 

 

Equating both,

2656= 5000 * (13) * Rate /100

2656= 50 * 13 * Rate 

Rate = 4.08 %