Question

Troy Ulman received his annual savings account statement, showing $78.75 in interest. If his savings account balance was $2,100 at the beginning of the year, what is his annual interest rate?

3%

0.03%

0.375%

3.75%

Answer 1

Answer is 3.75%

3.75% = 0.0375

0.0375 + $2,100 = $78.75