If a $1,200 investment earns $210 over 5 years, what is the annual interest rate?

The annual interest rate is 41.7%.

Step-by-step explanation:

Given : If a $1,200 investment earns $210 over 5 years.

To find : What is the annual interest rate?

Solution :

Using compound interest formula,

Where, A=$1200 is the amount

P=$210 is the principal

t=5 years is the time

r is the interest rate.

Substitute the value,

Taking 5th root both side,

Interest rate in percentage,

The annual interest rate is 41.7%.

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