Question

My final balance after 48 months was $896.00. if i originally put $800.00 into the bank, what was the interest rate?

Answer 1

The simple interest formula is presented as I = PxRxT where I is the interest, P is the principal amount, R is therate and T is the time in years.

 

I = PxRxT

($896.00) = ($800.00)xRx(48/12)

R = 0.28 or 28%