To determine the interest rate on the savings account, we need to know the interest earned on the $7000 investment at the end of the cash year. Since the information provided states that the interest earned on the investment of $7000 is moved into a separate account at the end of the cash year, we do not have this information.
If you have the amount of interest earned on the $7000 investment, you can use the formula for simple interest to calculate the interest rate. The formula for simple interest is:
Interest = Principal x Rate x Time
Given:
Principal = $7000
Interest = Amount earned on the investment at the end of the year
Time = 1 year
Substitute the given values into the formula and rearrange for the rate:
Rate = Interest / (Principal x Time)
Without the specific interest amount earned on the $7000 investment, we cannot calculate the interest rate on the savings account. Please provide the interest amount earned on the $7000 investment to determine the interest rate of the savings account.
