Question

After 3 years , Remington earned $390 in simple interest from a CD into which he Initially deposited $4000. What was the annual interest rate of the CD?

Answer 1

@Ultrilliam This question is in the wrong subject

Answer 2

Using the given information, you can formulate a representative equation.

4000(r)^3=4390
I chose 4390 instead of 390 as it's c umulative

Now solve for r.
4000(r)^3=4390
r^3=1.0975
r=1.0315

The interest rate is about 3.15%