A sum of money deposited at compound interest (compounded yearly) amounts to $6200 in 2 years and to...

A sum of money deposited at compound interest (compounded yearly) amounts to $6200 in 2 years and to $6324 in 3 years. What is the interest rate?

Quiz

Answer/Solution

2%

Steps/Work

6324 - 6200 = 124
124 / 6200 = 0.02 = 2%
The answer is A.