A savings account set up so that the simple interest earned on the investment is moved into a separate checking account at the end of each year. If an investment of $4000 accumulates $1,700 of interest in the checking after 5 years, what is the annual simple interest rate on the saving account?

Question

A savings account set up so that the simple interest earned on the investment is moved into a separate checking account at the end of each year.  If an investment of $4000 accumulates $1,700 of interest in the checking after 5 years, what is the annual simple interest rate on the saving account?

welshfella · Answer

let annual interest be x  per cent, then
(x/100) * 4000 * 5  = 1700

solve for x