Andreas invested $1000 in a savings account. After 4 years, the account had earned a total of $112 simple interest without any additional deposits. What was his interest rate?
The formula to figure out Simple Interest is: I = PRT. Since this question is asking you to find the interest rate, you just have to rearrange the equation to make R the subject.
> R = I/PT >> R = 112/1000 x 4 = 0.028 x 100 (find percentage) = 2.8%
