Answer:
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
[tex]6200 = 5000(1 +\frac{rt}{100})[/tex]
⇒ [tex]1.24 = 1 + \frac{6r}{100}[/tex]
⇒ [tex]\frac{6r}{100} = 0.24[/tex]
⇒ r = 4%
Therefore, the interest rate is 4% per annum. (Answer)
