You deposit \( \$ 200 \) in an account. The account earns \( \$ 15 \) simple interest in 3 years. What is the annual interest rate?

To find the annual interest rate, you can use the formula for simple interest, which is: \[ I = P \times r \times t \] where: - \( I \) is the interest earned (\$15), - \( P \) is the principal amount (initial deposit, \$200), - \( r \) is the annual interest rate (as a decimal), - \( t \) is the time in years (3 years). Rearranging the formula to solve for \( r \): \[ r = \frac{I}{P \times t} = \frac{15}{200 \times 3} = \frac{15}{600} = 0.025 \] To convert this to a percentage, multiply by 100: \[ r = 0.025 \times 100 = 2.5\% \] So, the annual interest rate is \( 2.5\% \).