Question

You deposit $600 into a 6 month certificate of deposit. After 6 months the balance is $618. Find the simple annual interest rate.

A) 5% B) 4% C) 6% D) 7%

Answer 1

Answer:

c

Step-by-step explanation:

amount = principle * (1 + rate of interest* time)

618 = 600 * (1 + r/2)

618/600 = (2+r) /2

618*2/600 = 2+r

(618/300) -2 = r

(618 - 600)/300 = r

(18/3)*1/100 = r

6%

so, the answer is option c, 6%