You decide to $10,000 in a bank account.If the value of your savings grows to $10,200 in one year's time,what is the interest rate on your savings?
A)5%
B)4%
C)3%
D)2%
E)1%

Question

Quizplus · Accepted Answer

The interest rate is found by dividing the interest earned by the principal amount and then converting it to a percentage. Here, the interest earned is $10,200 - $10,000 = $200. So, the interest rate is ($200 / $10,000) * 100% = 2%.

You Decide to $10,000 in a Bank Account