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4 October, 03:18

After 4 years, Aspen earned $510 in simple interest from a CD into which she initially deposited $3000. What was the annual interest rate of the CD?

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  1. 4 October, 05:40
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    So, the interest rate will be undefined, we'll name the variable n.

    4n (3000) = 510

    (The 4 in the equation represents 4 years)

    Multiply:

    12000n = 510

    We'll divide 510 by 12000:

    n = 0.0425

    The annual interest rate is 4.25%
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