69% of Americans have $1,000 or less in a savings account, leaving them
1 answer:
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Answer:
The correct answer is D. 3 % p. a .
Step-by-step explanation:
For the investment offered, Martin is supposed to get $180 as an interest ($6,180 - $6,000).
Now Martin is borrowing $6,000 from the bank to make this investment. He should be charged $180, so that he breaks even on investment.
Thus using the formula:
Interest= Principal × Time ( per annum) × ; (Here simple and compound interest are same as the sum borrowed is to be charged for a single year)
⇒ 180 = × 1 × Interest rate
⇒ 180 = 60 × Interest rate
⇒ Interest rate = 3
Thus the correct answer is 3% per annum.