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28 May, 12:57

After three years Remington or $390 and simple interest from a CD into which she initially deposited $4000 what was the annual interest rate of the CD

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  1. 28 May, 16:13
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    The annual interest will be calculated as under -

    Given, total simple interest for 3 years = $ 390

    Principal amount = $ 4000

    Interest in total for 3 years = $ 390 : $ 4000 * 100 = 9.75%

    Interest for 1 years = 9.75 % : 3 = 3.25%
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