What is the annual interest rate if $1600 is invested for 6yrs. and 456 in intrest is earned
I = r*t*Po = $456.
r*6*1600 = 456,
9600r = 496,
r = 0.0475 = 4.75% = APR.
To find the annual interest rate, we can use the formula:
Interest = Principal * Rate * Time
Given that the principal (P) is $1600, the interest earned (I) is $456, and the time (T) is 6 years, we can rearrange the formula to solve for the rate (R).
Rate = Interest / (Principal * Time)
Plugging in the values, we get:
Rate = 456 / (1600 * 6)
Rate = 456 / 9600
Rate ≈ 0.0475 or 4.75%
Therefore, the annual interest rate is approximately 4.75%.