Petra has forgotten the rate of simple interest she earned on a 120-day term deposit at Scotiabank. At the end of the 120 days, she received interest of $327.95 on her $21,000 deposit. What rate of simple interest was her deposit earning?

Learning Objectives

• Learn to compute and use simple interest in various contexts within finance.
• Learn about the consequences of variable interest rates on the amount of interest accumulated over distinct intervals.
• Acquire proficiency in computing the effective annual rate based on scenarios involving simple interest.