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You deposit $2000 in an account. the account earns $120 simple interest in 8 months. what is the annual interest rate?

Verified Answer :

MrJoafen

So the interest earned in 8 months (2/3rds of 1yr) is $120, if we multiply by 1x3rd more we can find the total for the year: 120x1.33= $160.

To find the rate, divide the total interest by the amount invested, 120/2000= 0.06% p.a.

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