Question

A bank account has a beginning balance of $560.00. After 6 months, the balance in the account has increased to $572.60. What interest rate is being earned annually on this account?
A. .045%
B.2.20%
C.2.25%
D.4.5%

Answer 1

Interest = $572.60 - $560.00 = $12.60

$560 x 6i/12 = $12.60

i = ($12.60 x 12) / ($560 x 6) = 0.045%