Eight years after opening her savings account, Macy had $7,880 in the account which earns annual simple interest. If Macy started with $5,000 in her account and did not make any additional deposits or withdrawals, what was the approximate annual interest rate on the savings account?   7.2%   8%   4.5%   19.7%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Eight years after opening her savings account, Macy had $7,880 in the account which earns annual simple interest. If Macy started with $5,000 in her account and did not make any additional deposits or withdrawals, what was the approximate annual interest rate on the savings account?

 

7.2%
 
8%
 
4.5%
 
19.7%
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