You deposit $1400 into a savings account that earns simple annual interest. After 12 years, the balance in the account is $2408. What is the annual interest rate?
The formula is A=p (1+rt) A future value 2408 P present value 1400 R interest rate? T time 12 years Solve the formula for r R= ((A/p)-1)÷t R=((2,408÷1,400)−1)÷12 R=0.06×100 R=6%
