You invest in $5,000 in an account earning simple interests. the balance after 6 years is $6,200. what is the interests rate?

The interest rate is 4% per annum.

Step-by-step explanation:

Let the interest rate that I am getting is r% per annum.

So, my $5000 investment becomes $6200 after getting r% simple interest for 6 years.

So, from formula of simple interest we can write  

⇒

⇒

⇒ r = 4%

Therefore, the interest rate is 4% per annum. (Answer)

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